That's right. This is a workaround for the MPEG LA license, and having the user download the binary right from Cisco is the only way to have Cisco pay for the license fees. Anything else and you've got to become a licensee.
There's plenty of other H.264 products that you can get without directly downloading them. Flash is a close analogy, they pay the flat fee and nearly every desktop in the world uses it. And while some people download Flash direct from Adobe's servers, other's get it indirectly, e.g. pre-installed on computers they buy, or by downloading an installer. And people build apps (including desktop apps) around that functionality.
Cisco is mostly doing this to support WebRTC interoperability with their deployed hardware (which generally means internet access) so they may just be going for the simplest thing for them to do.
