How would one go about compressing the captured stream?

I read it can be containerized as an MKV, but then would you re-encode as H.264, or is there a better codec?

I assume there is a quality vs time to encode trade-off?

Also, would this be a component in a viable DIY HDMI matrix switch?

I see this 4 input / 8 output 4K HDMI matrix switch for only $169 on Amazon here: http://amzn.to/28Ykyor

So, cost-wise not viable, but I like the idea of having more programmatic control of the switch.