I'm an EVO owner, since the morning it first launched. I'm glad Froyo came to it way before the Decemeber date that HTC initially planned to release it. With the 2.2 update, it introduced the h.264 video encoding method, which in my opinion is better than MPEG4. Anyone else noticed that when you select the h.264 codec. Why introduce the h.264 codec if it won't record 720p on the phone. I've attached pictures of what I'm talking about. Two with MPEG4 selected and two with h.264 selected. I do hope this is fixed with and OTA update.
The picture with the max 800x480 is when the h.264 codec is selected; the images with 720p as the max is obviously when MPEG4 selected as the video codec.
I haven't had an Evo to play with, so I haven't seen that before.
My *personal* take on it? h.264 encoding is a cast iron bear to do. *very* processor intensive. I've got a Core2Duo laptop and it'll rip both cores to 100% doing an HD video encode to h.264. Even with dedicated hardware like the Evo has for h.264, 720p encode will take longer than realtime.
So my personal guess is that they drop the encode codec from h.264 to something lighter for 720p so that 1) it gets done in realtime and 2) it doesn't eat the battery as bad.
I could be wrong -- I've never used an Evo.
Seems reasonable why 720p is not available for h.264 on the EVO. If it was, the battery would probably die really fast.