Why Can't we use AVI containers?

I've just got the new N97 and I've updated to firmware 11.0.021
I have to say I'm impressed with the multimedia capabilities and the screen is wonderful. My question is why on earth we don't have support for the AVI container.
I have a pretty good understanding of video technology and I've come to realize that despite the fact my handset will play xvid or h264 in an MP4 container it won't play the exact same file with an avi container.
I can't understand why. I'm guessing it won't play the same file again if it's in an MKV container either, that's quite understandable.
The effort one has to go to to demux/remux every single file for playback on the mobile makes the whole package so much less intuitive.
As far as I know there is no licensing concerns with container formats as the codecs themselves are what costs money to support.
The worst part of the whole situation is that there is almost no applications on Windows which will allow the transfer of a video from one container format to another without re-encoding. Linux and Mac both have options to do this with pass-through encoders like 'transcode' or 'quicktime pro' but on Windows the only solution is a complete re-encode which could mean hours to convert an entire film.
Please nokia, I implore you. Add AVI container support in the next firmware revision.

You can't use WMA audio in an MP4 file it won't play with an N97.
Use these settings:
Video
- MPEG-4 
- 640x360
- 1.5 Mbps
- 25 fps
Audio
- AAC (mpeg4aac)
- 2 channel
- 96 kbps 
- 44100 Hz or 48000 Hz 
If you are trying to use H264 video codec, start by trying Baseline profile. I don't know how to set it up in ffmpeg but if by default it tries main profile then the resulting video will not work.
For information about the video capabilities it should be here
640K Should be enough for everybody
El_Loco Nokia Video Blog

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