GNOMiE, the N770 is focused on mobile browsing. It’s not phone (you most likely already have one, why not use it?) and it’s not a PDA either. Given the choices it’s better to have something today that does one thing well, rather than wait indefinitely for something that does many things poorly, wouldn’t you agree?
Not that I’m too intimate with patents and stuff, but when licensing technologies from other companies there are clauses prohibiting you to reveal some things related to those technologies. And distributing Ogg/Vorbis might be violating some of those clauses. Checking the legal issues takes a whole lot of time and we just don’t have a definite answer yet. And it’s not worth to take the risk by rushing things.