Yes it does, both H.264 ( AVC ) and H.265 ( HEVC ).
But that doesn't really matter because your ( initial ) point still stands, real time H.264 encoding isn't taxing on an A14 anymore. Remember H.264's work started before 2000 and finalised in 2003. That is like playing Doom 3 on your iPhone. No longer technically taxing by any means even if you are playing it at native resolution.
However the industry is well aware of the slow down [1] of Moore's law. The cost increase as well as TDP headroom. So thinking we could continue to throw hardware at the problem simply doesn't work.
[1] Moore's Law actually includes a time frame within it, so it would not be wrong to say the law is "dead" considering it has slowed down way beyond its time limit within margin of error. But modern day's media and computer PR tends to use Moore's law as word for transistor improvement.