Why in the world is this restricted? I live in the Netherlands, and I really don't get what's so hard about releasing here. Sure, we're a small market, so not as important, but still... Software is global, man!
Why are they even bothering with h.264 anymore? Didn't they want to remove it from Chrome since like version 10? It's about time they start to aggressively push for WebM, if it's ready.
It would be odd, at the very least, if the problem was H.264 licensing. "All" Android devices (dating back to the G1, I believe) ship with H.264. That doesn't mean there isn't some other licensing (or other legal) sticking point, though.