"Good enough" is not good enough.

I started using winrar because winzip wouldnt fit in a floppy disk. so even in the 90s zip wasnt good enough

In the middle of San Francisco, with Silicon Valley level incomes, very possible. In the real world I still exchange files with users on rustic ADSL, where every megabyte counts. Many areas out there, in rural Mongolia or in the middle of Africa that's just got access to the internet, are even worse in that regard.

h264 is not good enough for many things