This may be a stupid question, but i don't see the point in transcoding.

My PC can play every file format imaginable, and show it on my TV with my old school HDMI cable.
Why do we have to transcode, instead of just letting the codecs on the PC do the hard work. And just stream the monitor output to the TV. Instead via the cable?

Even with a PC powerhouse i cannot transcode 1080p with surround fast enough to watch on the fly. 100% CPU usage. But when i use the cable, i'm doing fine with 5%. Seems like a huge waste og CPU, and electricity.