First, you seem to be confusing MPEG (the Moving Picture Experts Group) which is a group inside ISO that defines standards like MPEG 1, 2 and 4. This is a non-profit group that writes technical standards. And then there is MPEG-LA, which is an unrelated for-profit corporation that provides patent licensing services to its members.
Second, if you read Jason's blog post correctly, he's not saying VP8 sucks. He's saying that, as a codecs geek, he's disappointed to see that there is nothing new and exciting in there, but that instead, they've applied known techniques. The On2 marketing people had claimed to be much better than H.264, but he did not see anything in there to warrant that.