Comment by JamesSwift

We should be clear about software vs hardware transcoding being different things. Hardware transcoding is "free" for even commodity hardware. Yes, lower end systems might have trouble keeping up with a blu-ray remux as its source to a high-bitrate target. But you can very easily buy an off the shelf mini-pc to act as a transcode-capable server and eliminate nearly all the downsides that come with trying to avoid transcoding.