Yes, that's right. But the point stands, you indeed shouldn't do such encoding on the GPU, it's a tradeoff of (fast) speed vs (poor) quality and (big) size. Good for when you need realtime encoding.
I know right, who the fuck shares a wiki article about the comic when you could share the comic itself. Please don't keep that URL blue, it's a classic.
For me it's Spotify telling me I don't really listen to music anymore, Steam telling me I don't really play videogames anymore, and Untappd telling me I don't really drink beer anymore
*Orthinology