Something's definitely wrong. I play 265 content on a 3 yo cell phone without issues.
Check in VLC to see specifically what codec it's using, and in particular if there's any configuration for hardware acceleration.
You could be right, and I'll check the VLC settings if I ever do another 265 video... but displaying a video on a "tiny" cell phone screen is not really a good comparison to one being displayed on a computer monitor.
I just don't see enough benefits to bother with 265. I'm not at all worried about file size, so that doesn't sway me. As far as "quality" of the video goes, I dunno about you, but my eyes just aren't sharp enough to tell the difference! (Depending where/how it's being watched, of course)
Edited to add - I think much depends on the application of the video (pun intended). If you're shooting vids to post on Youtube, I highly doubt you'll "see" any benefit with respect to quality. If you're streaming video from your own server, then yes, 265 makes more sense because broadcasting 4k in 264 uses 32 mbps. 265 in 4k uses only 15mbps. That is the only advantage I see...bandwidth.
Lastly, 265 uses 10x the CPU power that 264 does. My time is valuable, and I'd rather not wait the extra time for the encoding to finish.
For the record, I'm not saying don't use 265, or that it isn't preferred over 264 in some instances. I just don't think saying only use 265 is correct. (I know no one said that, but that's kinda the implication) I'd say "In some instances 265 is much better than 264, but for MOST applications, 264 is perfectly fine, and possibly even preferred over 265 in some cases.