Where is H265? to give a new higher quality codec that guarantee minimum quality. The current issues are everything is described as Mpeg 4. When the world ask for Mpeg 4 their perception was Mpeg 4 is higher quality. However ASP is Mpeg 4, AVC is also Mpeg 4, and the difference between Baseline Profile and High Profile, are also Mpeg 4.
Mpeg 4 in itself no longer gives satisfactory results. It is one thing i like Divx, when it states a devices play Divx HD, you know it support High Profile etc. Currently there are many mobile devices out there that does not support H.264 High Profile or support what ever that describe as Mpeg 4. It is a Mess!
With x264 already mature, What happen if DS break the h.264 standard and try to forge a new format based on h.264 / x264 with better features like replace the i16x16 mode with an actual 16x16 transform and make the inter transform work accordingly (16x16, 8x8, or 4x4). Maybe make the decision quadtree instead of per-MB and get energy-preserving quantizer?
Making a new Codec from everything we have learned with x264 without the restriction of a H.264 spec.