Then it's not Flash. I really don't have a need to convert any animations from 2002 into the hippest standards. I've never thought to myself "Boy, All Your Base is still really funny, but if only the underlying technology that powered it was open and modern....."
Related: Regardless of their quality, which I'm obviously not going to speculate on, since you seem to care about patents, please read the patent grant that we wrote for webm.
It can't be "technically" open because there's no technical definition of open. Under one side's definition, just having a lot of industry players collaborate on it in public makes it open (the definition you're using) whereas the other side says if its freedom is encumbered by patents then it's not open.
Open is a horribly diluted word and there's no way imaginable you can say anything is "technically" or "not technically" open.
These tests are more involved. Last I checked, no browser gets much more than 80% (though I don't have or want Windows so I can't personally check IE9)
It's not for end-users. It's a service for developers to add to their web application. You can certainly try to coax all your users into pre-encoding their video - and understanding how to do that - if you like....