If you’re seeing washed out colors, then the video is transcoding.
There is an existing, longstanding Feature Suggestion for HDR to SDR Tonemapping.
Not true. Multiple Plex clients support HDR video.
Plex SmartTV apps, Samsung Tizen & LG WebOS, both support playback of HDR video. Certain device limitations must be taken into account. Enabling image based subtitles (PGS, VOBSUB) forces a video transcode, which kills HDR. Enabling text subtitles when audio is transcoding has the same effect.
AndroidTV based TVs, such as Sony, support playback of HDR video.
AndroidTV based streaming boxes/sticks, such as the Amazon FireTV 4K and Nvidia Shield support playback of HDR video. Note that due to manufacturer limitations, not all AndroidTV streaming devices support playback of HDR video.
The AppleTV 4K and many Roku devices support playback of HDR video.
Plex Web does not support HDR due to browser, not Plex, limitations.
Plex Media Player and Plex for Windows/Mac both direct play HDR video. Both perform HDR → SDR tonemapping. Granted, they do not output HDR video, but neither will you see washed out colors.