That is pretty much the tack I take. Too many issues (for ME) with transcoding. I rip, encode once and live with it. I pretty much live with all very high quality 720p copies of stuff. Some high quality 1080p copies of stuff I really care about.
I almost never watch anything on my phone and my tablet (T100) doesn't have that much in the way of space limitations to store a 2.5-10GB video on it if I want (or several). Streaming isn't an issue when I am on my WLAN for the full fat files and I've found its generally better quality with a high quality 720p than it is a transcode from something like PLEX.
I am not saying its total crap...just, well, short cuts are needed in the transcoding for something like an i3 to handle 3 1080p transcode streams at once...versus the quarter real time frame rates I get out of my i5 quad core Ivy chip doing 1080p BR to 1080p h.264 with my settings. That is a factor of 12 difference in frame rate through put, with roughly double the procesing power...
Conclusions can be drawn.
Non-transcoding on the fly means things FF/Rewind work perfectly, I can load up a movie immediately if I want to take it on the go (or at least as much time as it takes to copy over wired/wireless) and other benefits (like no temptations to store full BRs on my server).