In real-time. If the encoder is too slow for that it is the bottle-neck.
1. the uploader would have to quickly send data to the server, which requires fast encoding in a different format (so lower-quality than AV1, and introducing artefacts from a different lossy encoding)
2. this low quality then gets recompressed with a different codec with different artefacts, and possibly worse compression due to the artefacts introduced by the first codec
When uploading to video sites that are not live, the idea is usually to use as high-quality an input as possible first, in which case this won't be much of a problem.
But I might be mistaken on how bad this affects live-streaming! Perhaps the first codec throws out information in a way that smooths out the video, which then makes re-encoding with AV1 faster and have better compression with minimal extra loss of details.
In any case, I wasn't referring to inter-frame parallelizability, I was referring to intra-frame parallelizability which doesn't require a delay.
Now, this works fine for large broadcasts where there is no two way communication between a streamer and their followers or in some type of competitive situations, but that is not the norm.
Case in point, a 40 second 1080p clip would take over 8 hours to encode on an i7-4800 - that's less than 2 frames per minute. You need a lot of horsepower to cut that down to 40s / 60 FPS.
[1] https://bitmovin.com/bitmovin-supports-av1-encoding-vod-live...
When measured in, say, total sum of all CPU cycles and hence total energy spent, then yes: the decoder is the bigger deal. So your argument holds for non-live videos.