Selfhosted
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I quit streaming services around 4 months ago, determined the exact maximum streaming quality every device I own can handle, used a $60 used office PC from craigslist, admittedly I haven't fully figured out how to get subtitles to work without transcoding, but I just need to sit down and figure it out at some point. I direct stream all of my content from a 10+ yr old PC and it uses less than 5% cpu while watching a 4k movie. I could stream to easily 5-10 PC's and still likely be able to do software maintenance on the PC at the same time. That and with how jellyfin looks like a streaming service, with no transcoding it's better than any streaming service. Nearly every streaming service you use is transcoding on the fly instead of storing 20versions of each video for direct streaming, direct streaming a previously encoded asset will always deliver a higher quality viewing experience.
If you're talking about commercial streaming services like Netflix, I highly doubt that. If you're talking about self-hosted services like Plex, then you're absolutely right.
In my experience, transcoding with subtitles becomes an issue when the subtitles are burned in to the video. I often get external subtitles from https://www.opensubtitles.org/ and then stick the downloaded SRT file in the same folder as the movie. Make sure it has the exact same file name as the movie so jellyfin will associate the two together. Once I do that, it does not transcode at least for subtitle reasons.