From
Petter Reinholdtsen's blog:
This new script uses GStreamer instead of VLC to capture the desktop and stream it to Kodi. This fixed the video quality issue I saw initially. It further removes the need to add a m3u file on the Kodi machine, as it instead connects to the JSON-RPC API in Kodi and simply ask Kodi to play from the stream created using GStreamer.