What that means to LJ's users is that the owner of Blogger just bought out everyone's favorite solution for embedding videos into their 6A-owned weblogs... in addition to also owning what appears to be the second most popular solution, Google Video.
Every time an LJ user embeds a video into their journal, a real chance exists that Google will find a way in the future to make some money off of it, link people back to their sites and services, or deliver an ad. Better yet, when people do so, they will influence Google's own search results, pushing Google's sites up to the top of the ranks.
So, while they can say what they want, the odds are good that at least a few people over at SixApart aren't entirely amused and enthused about this turn of events. That said, they don't have a ton of money sitting around to go shopping for their own solution, either. If Google is willing to pay that kind of dosh for the biggest (i.e. most unprofitable) player in the web video niche, then it makes you wonder how much the prices have gone up for all the other players. Everyone's going to be asking for $100M+, because a lot of them know that under the right situation, they could actually get that kind of money. This is, of course, batshit insane.
So, if they *REALLY* want a video option that doesn't support Google, they could drink the koolade and try to partner with Vimeo, or Grouper, or Veoh... or cook up their own video hosting solution.
...or alternately, if they don't want to waste a bunch of money in an attempt to offer an inferior solution to their customers, they could do exactly nothing, in the hope that Google won't find ways to eat their lunch. (Which arguably isn't even their lunch to eat in the first place.)
Indeed, as a user, one would hope that this would be the case, and that 6A won't try getting into an overpriced, overhyped marketplace, as they cannot and should not try to be everything to everyone. Then again, as a user, one would also hope that Google/Blogger would learn to speak goddamned RSS already, rather than advising their users to piss off and use some obscure 3rd party app to do the obvious. Is it laziness on their part -- or just sheer business-driven pettiness -- that has stopped this from happening yet?
"Bonjour Monsieur le Google! Savez-vous parler anglais? Êtes-vous descendu des arbres encore?!"
Google is so good at being open on some fronts, that the way they handle RSS -- or don't -- in their blogs seems highly incongruous, to say the least. Really, it makes you wonder why Google ever bought Blogger in the first place. Do they intend to use them, or did they just want to keep them in the bullpen until they reach retirement age?