You're missing the point. If a person want's to download specifically a H.264 format video, they have not a clue whether what they're downlding is one or not. That also includes mpeg4. Both of which are the only formats iPod are able to import.
If a person is downlding an avi file, they too have not a clue what type of file it really is unless there's a clue within the filename itself.
Some people would prefer to downld specifically what they're seeking rather than having to convert them to yet another (lossy) format when they're after a specific format for a particular purpose. It's a little like converting mp3 to mp3 or mp3 to m4a. If you downld what you're specifically after then there may not be any need to convert at all. This includes not only iPod but also DVD. Since nowadays many dvd players can also play DivX format, or whatever. So why downld a file in another format & have to convert it to divx when it's not what you were expecting. At present there's no way of telling what you're downlding! An avi file could be anything. An mpeg could be any type of mpeg. Ask a mac user how many formats a QuickTime video file can be in. Basically almost anything under the sun. It could be a high definition video or it could be a crappy less than vcd quality video file. That's b/c numerous codecs can be used to convert it or be saved into. Same for avi.
BTW I use a mac. My Roxio handles most files very well as far as burning goes. For computer playback, VLC also does the job.
My reference to DivX earlier or later versions or Indeo versions 3, 4 or 5 is because not everybody has the latest burners. And even VLC cannot play indeo 4 or 5.
http://www.videolan.org/vlc/features.html