I wonder where you'd hit the performance limits vs the algorithmic improvements. On our family pentium 120 playing an mp3 in Winamp took 10-15% of the CPU, so I'm not sure how much headroom there'd be.

But anecdotally I'll share that one of my brother's college roomies was a consultant for RealVideo and was behind their initial codecs. He came back to them with algorithmic improvements a bit later and they just cold shouldered him saying the existing codec was good enough.

So who knows if the biz side folks at the time would have even seen value in better codecs, as unbelievable as that seems to us now in the streaming and zoom call world.