Thank you for the clarifications! But you have nothing understood about the problem I'm mentioning.
Yes! You're right XVid would even be better than divx because it's open source. But this is not the question here. It's not a question about open source or not.
Yes x.264 exists and h.264 can be played by a High End PC on Linux.
I did never say anything else.
But the ATI graphical card is there to play h.264 on NORMAL (not high end) PC (with UVD). And that you can't do on Linux!!!
Because the DRM rights management blocks the opening of the driver.
So for the moment you CAN'T play h.264 on Linux.
Yes in the future you can ON SOFTWARE (thats what your libavcodec is for). The x.264 doesn't change anything. It's handled by SOFTWARE.
For a normal PC it's strictly IMPOSSIBLE to play h.264 and the DRM policy is the reason why!