The video you watch from a Web browser is downloaded. So there is not much difference with playing it locally (and the most natural feature is to actually let the user save the video). So, really, I do not get what you mean by "Chromebook like mentality" (I assume you are referring to SaaS).

Mozilla Firefox (and its derivative such as Trisquel's default browser) is Free software and reads Ogg Theora and WebM videos (most of the content in the element of HTML5). W3C has not specified any codec to be used for video (WebM will win against H264 thanks to YouTube) and strictly has nothing to do with Flash.

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