If I have a 256 CBR mp3 file, and I've chosen my max bitrate to be 128 CBR, then a perfect lossless file has been transcoded (at least) once to give me that 256 bitrate file, and then being further degraded to allow it to stream at 128. The only good option for transcoding a file is if you're starting with a lossless format to begin with. Of course, in trying to think of a better solution, I have absolutely no ideas whatsoever. Most of my files are FLAC, so this issue may not affect me, but it could affect users who aren't as savvy with file formats or don't have the storage space to keep lossless copies of all their music.
In addition, there seem to be far too many places where you can set the max bitrate. I can set it in the Subsonic player settings, user settings, and also in the alternate Android client I use on my phone. If these are set incorrectly, it seems that a user could be transcoding a file three times, unless these instructions are only carried out once based on the lowest "max bitrate" setting that applies.
