One would have to define a video format for such projects. For this to be practical, it shouldn't be a super-compressed format either, but something that consumes few resources.
FFMPEG can be used to encode Quicktime/MKV containers, using some rather efficient condecs such as ProRes. ProRes has the distinct advantage of presenting a wide range of options from perfect-but-huge-file-size HQ 444 to looks-fine-but-just-1GB-per-5-minutes-1080p PROXY-Q15.
The codecs FFV1 and Huffyuv are free, but require a huge amount of disk space so it might stutter on playback if that disk isn't just for video.
Reapers video playback is not its strength, so this must be tested carefully.
+1 for video sub projects. I'd be using this for all kinds of sequences in my more hobby-oriented fun projects.
Also, +1 for caching effects and bits that overwhelm Reaper on the users system, which is quite easy to do.
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