Having a functional video player on your site or in your app (e.g. one where you can skip to arbitrary times without requiring the video be buffered up to that point; or where a video can be "resumed" from the middle if you leave it and come back) already requires that you use MPEG-DASH or HLS; which in turn implies/necessitates pre-chunking, no?
Is there some use-case where people are currently serving 400MB contiguous video files from a CDN? I can't think of one. YouTube doesn't. Netflix doesn't. Even porn sites don't.
I guess Archive.org has some large video files on there in various places, that can be direct-downloaded; but the recommendation Archive.org itself makes, is to consume those via BitTorrent. Presumably they don't have a CDN partner willing to handle their unique workload for cheap.
Browsers are smart. They only buffer a few megabytes at a time and can seek around pretty efficiently.
It's totally possible to "encode for streaming", but it usually results in both an increase in overhead [more keyframes] and a decrease in quality [inability to use predictive interpolation, instead relying only on forward-interpolation.]
Mind you, this streaming-enabled encoding is how things were done on the web, before the advent of MPEG-DASH/HLS; and it's still how e.g. the MP2 encoding of digital cable/satellite video works. But we don't really want to go back to those days. They kind of sucked.
Jumping to random byte offsets in a video also tends to screw with any embedded data streams like subtitles or thumbnails, which tend to just be stored in most media container formats as a single chunk at the beginning/end of the file, rather than being spread or copied across the stream. Again, the kind of captioning done back in the MP2 days is immune to this, but it kind of sucked as well (e.g. it wouldn't trigger if you happened to skip to the millisecond after the instruction for it appeared in the stream, often leaving you with ~30 seconds of untranslated audio.)
My impression is DASH/HLS are mostly useful for adjusting bitrate on the fly.
† I mean, a digital-cable video stream is always "in the middle" unless you're just starting a VOD stream, but still.
Do browsers even support embedded subtitles?
I think what you're saying applies more to a setting where the video is being streamed live, so that you cannot access the start of the file to get keyframe metadata. In that case HLS and MPEG-DASH help.
Serving a 400mb video via a CDN is highly dependent on the CDN. Some will construct a cache entry from a slop of range get requests and translate them to get the missing pieces and work brilliantly and other CDNs should be avoided.