For anyone wondering H.264 is used for a wide variety of services like Youtube, iTunes store, Blu-Ray Disks, Silverlight, Flash, and certain broadcast services across cable and satellite services. It is to help people keep video and audio quality relatively high at a smaller bit rate. This means you can stream it with less bandwidth and maintain quality to a certain point. Higher than other encoding type any ways.
H.264 / H.263 are a subset of MPEG-4 the common notation is H.264/AVC, AVC/H.264, H.264/MPEG-4 AVC, or MPEG-4/H.264 AVC. So really it's going to be the same thing really except for some reason they didn't include a 720p option in the software for out phones. I guess to ensure that you get pure uncompressed(?) video at full bitrate. (Hence the fps is pretty bad as is, at a lower bitrate it would look like 480!)