The hardware required to save bandwidth here is much more
than it is worth the (still) few users who would need it.
A good scaler and colour space converter is much more important
than any bit stream interpreter in hardware.

I agree with you. A very good image quality will be a must compare to
few cpu cycle saved for media center builder.  So i think we should
concentrate on the final stage of the video pipeline. Plenty of thing
could be done : good scaling, nice video color but also filtering
(like smart filtering for zooming or "deblocking"), color space
conversion... many 2D ops in fact.
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