Unless I'm missing somethng, nothing significant is going to happen till FiOS replaces the MPEG2 only older STBs and DVRs with newer STBs that support MPEG4. Then they can deliver all the channels delivered in MPEG4 as MPEG4 and gain more space.
And they'll gain even more space by eliminating SD simulcast channels for SD only boxes as I believe all the MPEG4 boxes do HD.