I prefer using software transcoding on my DVR server because, at least on my late 2014 Mac Mini, the hardware transcoding has some quality issues (random blockiness that occurs every few seconds).
Unfortunately, my DVR server is just barely not fast enough to transcode two streams at once in 720p using the software transcoder.
It would be nice if the Channels client apps offered higher bitrate options for lower transcode resolutions. For example, the ability to stream 576p or 480p at 2mbit/s would work really well for me.
(Alternatively, the ability to reduce the ffmpeg encode quality for simultaneous transcodes would also do the trick. Or even better, have the transcode quality adjust dynamically as needed to keep up.)