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Technically 3.5" SSDs are still out there, but they’re massive (16-64 TB) and target enterprise use (with a price to match).
And 3.5" is still the standard for platter HDDs, which are still the more economical option if you need large amounts of storage.
Now if you meant no more 3.5" floppy disk drives, then yes, those are definitely gone. ;)
It’s not Jellyfin, but here’s my N100 simultaneously doing two 4K HDR transcodes with tone mapping enabled. Neither stream had buffering.
So it’s definitely a capable chip, but might be dependent on transcode settings.