Pi Zero 2 W
I have the Hobbyist kit -- which comes with a Pi 4b, IIRC. I'm wondering, though, if I could swap that out for a much cheaper pi zero 2 w and thus avoid buying another Pi 4 b for a different project? Does the 2w have enough performance and good enough networking, or is the Pi4's better GPU needed here for video encoding?
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I haven't tried it yet. I wasn't able to get ahold of a Pi Zero 2W until a couple weeks ago, and I haven't had time to experiment in the meantime. It sounds promising!
I tried with the Pi Zero W a year ago, and it worked surprisingly well, but there was a lot of lag on input processing. The Zero 2W might fix that issue or fix it enough to be usable.
If you test it out, let us know your results.