The cheap ones are using hardware JPEG encoders. The associated micro isn't powerful enough to do it in firmware alone.
I haven't figured out why they chose to remove it, but your point about licensing cost combined with them not advertising it much as a feature, and most of their competitors not including "proper" video encoding might explain it.
Edit: Found an official explanation here: https://www.logitech.com/en-us/video-collaboration/resources... TLDR, they figure most computers at that point had HW encoders.
Same goes on the other hand for the receiving end - decoding a stream of JPEGs is just much simpler in both CPU use and code complexity than dealing with something like H.264.