Originally Posted by nekrosoft13
there are other codecs as well
True, but if the majority of codecs are supported natively, it doesn't affect most people.
The primary issues, as you pointed, pertains to other NEWER codecs that may be released which are better/more useful/faster than the bog standard that 7 will support.
I don't think innovation should be hurt in any way.
By locking things down and supporting a few formats, rippers will likely start moving to those standardized codecs instead of more obscure ones and this will affect the newer ones