This is a suggestion rather than an issue.
Looking at the Media Network options in MC, I see that there already are some cursory transcoding options for streaming via DLNA to external media renderers. What are the chances that these capabilities could be expanded?
I currently use the PS3 Media Server to stream video to my PS3, mostly anime DVD/BD rips (using DVDFab to isolate titles and chapters), which involve several different formats for video, audio, and subpictures. To be quite honest, I don't like PMS all that much due to frequent transcoding oddities (artifacting, a lot of A/V sync issues, a few too many inconsistencies in quality control between releases, and a lack of general support, prompting me to settle on v1.54, as it is the latest version I can find that functions halfway decently), but it is the only application I have found that can reliably grant me the option to stream all of it with or without subtitles while retaining the ability to switch between the various audio language tracks. I have tried to replicate this functionality with MC, but unfortunately, it's just not quite there (I can get a stream, but I can't choose the audio or subtitle language tracks using the PS3's XMB).
MC's Red October functionality has gradually been getting better. It would probably take some complicated work to get it to do the things that PMS does without issue, but does it seem possible to use a combination of Red October and some custom renderer-specific configurations to make it work?