MPEGTS would be great for things I have wanted to do in the past, and all you probably have to do is hack the video element so it can handle that.
I think the thing about MJPEG and webcams is that it's relatively easy to make MJPEG from a webcam. MPEGTS would require more code I think?
So (i) if you want a solution that works out of box on any device, (ii) if you have enough bandwidth and (iii) if you are not interested in video quality, Mjpeg over Http is a good trade-off.
Therefore no audio and compression/quality is shit. Also, MJPEG stream doesn't have timestamps, so it's impossible to provide smooth playback of MJPEG stream, or synchronize it with other streams.
We do need a video transport better than MJPEG, but please don't make it RTP-based
Just use VLC, as everybody else.
BTW what is so complex in RTP?
Granted this project looks like a lot more streamlined.