Standards are very important in maintaining compatibility across all Linux distributions. ISVs are important because they bring the applications to Linux. Applications are important because they bring users to Linux. As you can see, it's a trickle-down effect that has large implications. That said, we are working hard to make sure the evolving standards are good ones.
Bad standards can also be very harmful.
So far, the Linux community has been very good at working out good standards. With a responsible community effort from all players, I fully believe the Linux community can maintain that trend. If so, you can expect Red Hat to participate fully with the standards that are created. Everyone probably has a slightly different definition of what they think LSB is and what it should be. I will take the liberty of telling you what I think it should be.