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Adjustability of codec parameters and quality are reasons to prefer software over hardware for encoding, but I've never seen any evidence or explanation for how software decoding can likewise be significantly better—unless you're referring to post-processing that can just as easily be done after hardware decoding.

Encoding yes. Decoding the image is equal, at least with h.264

You probably read this about software encoding and got them mixed up in your head.

I've messed around in the anime fansubbing scene many years ago and still tinker around with codecs and filters since I care about that stuff.

I don't usually use hardware decoders because there are restrictions, such as what renderers can be used or what and where filters can be placed in the decoding and rendering pipeline.

Hardware decoding is great when power (be it electrical or processing) is limited, but if you really want to have all the knobs available software decoding is what you want.