Hardware encode is required if you want things like video calls, camera recording and such to use it.
It isn’t required for content distribution platforms which aren’t realtime and the cost of encode is easily made up by hundreds of thousands of streams.
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One of the interesting usage of AV1 was specifically for low bitrate calls, and software encoding was perfectly fine, even on mobile.
With low enough resolution, framerate and bitrate, you can get a quality stream without significant encoding artifacts compared to any other codec. It is in production right now and has been for a while.
The tradeoff CPU / bandwidth is quite advantageous in situations like this. And no, AV1 HW encoders cannot usually be used, they are not designed for a tight bitrate control or realtime communications like software encoding is usually.