GG were the most trollish about it (since I figured you'd want a specific documented incident to refer to), but it was a widespread and general opinion among anime video encoders (and to the best of my knowledge any video encoders who were pushing the boundaries at the time shared the same views, though I'm less familiar with the non-anime communities).

No, that's just one documented instance. VLC being bad was a meme outside the anime community, too. It affected anyone trying to utilise modern features for video playback.