Earlier quoted context omitted.
Right, because we have alpha channels now
Not necessary for blending in video overlays, and wasteful. Well, necessary inside the overlay if that is where the controls should appear. Alpha blending is two reads, one write per pixel, for the whole affected region (whatever that is, could be the whole screen). An opaque overlay is one read, one write, only for every pixel in the desired rectangle.
As OP noted, using hardware display planes can have efficiency advantages for cases like floating controls over a video or smoothly animating a plane over a static background, since it avoids an extra read+write for the composited image. However, it also has some quirks -- like hardware bandwidth limits on how small a display plane can be scaled.