If you want to limit the plugin to using only the hardware then I agree. However, if you want to provide capabilities beyond what the hardware is capable of then software is the only other place to do it. This is perfectly fine, although it probably means the user wasted his money on a hardware decoder if he's just going to do software decoding anyways. It doesn't hurt to put more consideration into what you want/need before pouring money into hardware. I know guys that threw a lot of money at hardware decoders only to replace them with cheap vdpau-capable video cards. To each his own I suppose. :)
I think Martin's talking about the PVR-500 encoding aspect, not hardware-vs-software decoders.
I have no qualms about recoding - my production box is dual core 64-bit and sits mostly idle anyway :)
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