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I can't help thinking that running IVMS4200 on a PC is a high load on it whereas the actual NVR itself seems to have the ability to output all these cameras through VGA or HDMI without a sweat

Yes I expect that would need alot of processing power. as for the prefer hardware support, I can only guess that it uses GPU rather than CPU as software rendering will cause the CPU to max out under certain conditions. Do you have a high end video card ? I have a Nvidia GTX970 / i7 3770K /...

All mine are on H264, so i'm not sure what else it can be, in terms of CPU maxing out, indeed quite possible under certain conditions, especially if there's more cameras than me.

I have this same issue with my 5 camera + NVR setup. Its a DS-7608NI-K2 8 Port, 5 cameras (2x DS-2CD2142FWD-IS, 2x DS-2CD2155FWD-IS, 1x DS-2CD2442FWD-IWS) My cameras don't connect directly to the NVR, they are reached via the switch. The issue for me is worse on the 4MP 2142 models however...