Various VMSes will transcode a stream to a lower resolution/slower framerate/more highly compressed one in certain configurations.

Often for mobile access, when a sub-stream is not available. Taking a 1080p stream and transcoding it to D1 as an example, before sending it to a phone for viewing...

Which might normally reduce an H.264 stream by > 50%.

But since Smart CODECs often save the same or more, and since transcoding will presumably destroy the dynamic GOP/spatial compression, is it really a good idea?

Is it possible when using Smart CODECs your stream could end-up with a greater bitrate and with lower resolution/framerate than it had before transcoding!