Okay, I can validate that deep analysis gives us the requiredBandwidths attribute needed to keep the server from transcoding when the needed bandwidth is close, but not over the available bandwidth, as identified by @pshanew:
And it does override the default “double” requirement as identified by @hokierulz.
The key here has to be the “requiredBandwidths” attribute in the individual media xml file and the “Deep Analysis” required to get that attribute. It allowed me to understand why two videos encoded by the same encoder using the same bitrate, resolution and audio would be acted on by the server so differently (one direct played one transcoded).
I hope this thread helps others and thank you to all who chimed in.