^^^^ 3500 is the maximum Twitch will allow non-partners before declaring it a DDoS because it severally affects the ingest servers. Don't use a setting this high because the majority of viewers won't be able to stream your broadcast. Stick to 2000 - 2500.
flavoured, the encoding is done on your CPU using the x264 encoder - not your GPU (unless you're using either Shadowplay or QuickSync). Hardware encoding gives worse quality results than x264, but it removes the strain of encoding from your CPU. If you use a hardware encoder (like Shadowplay, QuickSync or a capture card) then you will need to stream at a higher bitrate to get equivalent quality results to using the x264 encoder.
flavoured, the encoding is done on your CPU using the x264 encoder - not your GPU (unless you're using either Shadowplay or QuickSync). Hardware encoding gives worse quality results than x264, but it removes the strain of encoding from your CPU. If you use a hardware encoder (like Shadowplay, QuickSync or a capture card) then you will need to stream at a higher bitrate to get equivalent quality results to using the x264 encoder.