Sure you can convert the DVD to whatever codec, I have found the original mpeg stream to not be very compatible with my devices. When I did 264, it was more for speed. It’s a 480 p/I mpeg2 stream, I don’t think 265 is worth the extra CPU cycles for this case. This is also just an opinion. 👍
True about AC3 being left alone, but dts should be converted, I can’t seem to get that to bitstream as nice as Dolby tracks.
I do reencode my uhd rips, to bring them down to 1080. I only have one 4k display and it’s not worth the bandwidth to try and stream it for me.
What if it was The Gulf of the Atlantic