I don't buy your "more competition around open standards" argument as presented. To use your examples, there aren't more viable Web Browsers vying for my HTML-viewing marketshare than there are office suites capable of consuming RTF. There aren't loads of Gimps and Photoshops competing for my JPEG editing needs. There is competition around JPEG with digital cameras, but that is just an interchange format for the internal, proprietary RAW representation, just like RTF is in the Word Processing arena.
There's roughly the same order of magnitude of competition around all of these aforementioned standards, be they open standards or de-facto ones. Open Standards are good. But when they reinvent the wheel, they're somewhat less-good.