That makes no sense. Why would they use their own CODECS if they were that much less efficient? It's more likely that their code is sloppy bloatware, as is the norm these days. I suppose, in the end, there is no difference. The point is that this function should use far fewer resources than available in a 2.5GHz processor. It should run in a small corner of such a system (multitasking, anyone?).
To save money eg: H.264 is apparently patented in USA.
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Not buying it. Probably expired. Even if they wanted to get around them, use JPG, or some such. The screens are almost static anyway. There has to be something cheaper and faster than the bloat they have.
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