So, I am trying to set plex to have anything that is not local to stream at 720p 4mbps. I know there is the “web” function in plex but I assume that is for me when i stream from the web.
Is there a way to set plex to stream 720p to my friends?
I would rather have the server transcode vs using more upload bandwidth with 1080 vs 720 - 5mbps upload 
You are correct, the web settings are per browser. Functionality to limit bandwidth/user or device should be implemented this year.
Quality options are set client-side for now.
Instruct your friends how to do it and verify that they comply with PlexPy.
If you catch someone who doesn’t set the right option repeatedly, edit his share so he only gets a photolibrary where a text explains how to set it. 
