>"You can do high-profile VC-1 with Tegra 2, but not h.264."
Android 3.x has no native support for VC-1. It doesn't matter what the chip can do.
>Now, VC-1 is comparable in quality to H.264.
This argument was over and done 4 years ago, when VC-1 became a SMPTE standard.
(look at the dates)
The consensus of the videophile community was that x264 (the H.264 flag-bearer for "the rest of us") is better than VC-1 qualitatively, but VC-1 is lighter on playback requirement, and is thus more suitable for low-powered devices.
It's a moot point, since unlike x264, there is a dearth of quality free software that make use of VC-1. Result: Most warez vids use x264. Moral aspect aside, the volume of warez content will make H.264 the defacto standard, just as had happened with DivX and MP3.
>Indeed some Blu-ray disks use VC-1!
That would be relevant if tablets can play BDs.
>Not that I know of an easy to find cheap VC-1 encoder
>given the Tegra 2's legacy
Teg2's legacy will last for another 3 months. After that, no tears will be shed.