Yes, unfortunately, the clients will have to do all the decoding. However, one may be able to passby this limitation with some sort of wireless AV Sender/Receiver set.
I might do a bit of research to see if there is any host decoding media server software around. My wife's laptop is not quite up to scratch when it comes to decoding/transcoding FreeviewHD TV3 here in NZ.
Edit: I just found out that Webserver plugin for DVB Viewer maybe able to transcode DVB streams. I'll play around with it a bit later on and post my results.