The problem is the CDM, which the W3C isn't standardizing.
An interface to an unspecified DRM module is not a useful web standard. And due to the nature of DRM, a fully specified DRM standard is also completely useless. DRM is just not compatible with open.
This is in fact how it works in Firefox. There's no part of Firefox that is closed source, including EME support or even the CDM sandbox. The CDM is loaded at runtime from an external server.
Focusing on the W3C and/or it's relation with open source is completely and utterly missing the point, but it's explained enough throughout this thread that I see no point in repeating it once again here.
Which means the whole thing doesn't work in a fully Open Source browser. EME is non-functional without a proprietary CDM.
It's like standardizing the <object> or <applet> tags: yes, they're a standard, but they're a standard way to talk to completely non-standard bits. But worse, because you could use <object> or <applet> to talk to an Open Source plugin, but a CDM completely loses what little function it has if open.
(That includes hardware-backed CDMs, since signed software you can't replace isn't Open Source either.)
Or the other way around, W3C should only approve feature complete standards that can be implemented using open source.
You cannot have an open web if an essential part is governed by binary blobs.
Nothing is lost if W3C does not approve an interface to secret technology.