MPEG-2 does not want to die

The US company Digigami has developed a MPEG-2-derived codec named MegaPEG HD MPEG-2 VBR. Its size/quality ratio is claimed to be similar to the MPEG-4 ( and one of its derived codec, the H.264).
Using this modified MPEG-2 codec, a 720p HD video could use a data flow rate similar to the current DVD (between 3 and 7 Mbits/s).
This news might give ammunitions for part of the Movie industry that refuse to shift to the MPEG-4 format.