What am I supposed to do?
You decide what to target, and work with what you have. That’s how it’s always been with web technology.
If you need to support the barest minimal possible clients then you might not even have HTML5. Otherwise, if you have HTML5 you can use the source tag to provide clients with a choice of formats/encodings and they can pick the one they support. If the clients can’t even mange that, well, things on the internet have always been broken anyway.
And somebody’s gotta start somewhere, WebP was shoved down everyones’ throats and now it’s supported very broadly, as AVIF pick up users software devs will take notice and start supporting it.

The standards bodies and the companies that pay their bills. That’s Netflix, Google, et al. All have a vested interest in good multimedia support in browsers. It’s why browsers have shockingly good support actually, most of the problems are downstream on clients and implementations that don’t know or care to enable these newer formats.