Optimal Jellyfin install, windows vs container, GPU vs CPU

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The original was posted on /r/selfhosted by /u/AwefulUsername on 2023-08-05 02:09:50.

I have a Dell R730 running proxmox with a Truenas scale VM and a Windows VM (among other non relevant VMs). The windows VM has an RTX 3070 passed through; I use it for gaming. Proxmox and Truenas scale do not have a GPU but run on dual E5-2673 v4 with a total of 40 cores. I have space for another small GPU, like nvidia P400 size, if needed.

I would like to stream my media to Jellyfin clients on my iPhone, steam deck, and fire TV. Mostly while at home but if possible while away as well.

I was originally planning on installing Jellyfin via the Truenas Scale app store, or in a proxmox container, for ease of snapshots and portability. But then I read about hardware transcoding. I'm not sure how important that is, or if it's better to throw a GPU at it or a bunch of CPU cores. Here are my options:

-Install the Jellyfin app in my windows VM so it has access to the RTX 3070.

-Install Jellyfin via Truenas app store or in a proxmox container with no GPU.

-Buy a small GPU (such as the Nvidia P400) to pass through to Jellyfin inside Truenas or in a container on proxmox.

Is hardware transcoding important, and if so is a GPU much better than a lot of CPU cores? If both answers are yes than I'm leaning towards installing it on my Windows VM unless there is good reason to prefer installation in a container. What would you suggest? Thank you.