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This has some relation to the the issues being discussed here but I didn't want to hijack that thread any further.

I've run into a few TV series discs where the episodes are all combined into a single M2TS and played from a single MPLS, but there are chapters present for the start of each episode (mingled with additional chapters).

I'm not quite sure how it could be handled from a UI perspective, but would it possible to allow for demuxing a selected MPLS/M2TS into pieces by chapters/timestamps?

Or is this something that should just be dealt with post-demux using other tools? It's definitely not a common scenario so maybe it would be too much work for minimal gain.

It's been discussed. The progress bar of life, together with the expiration thereof, and the inexorable advance of time itself, assessed in view of maximizing the return on remaining resources, precludes any appreciable probability of realization of the proposal.

Fair enough!

MKVToolNix has such option to split by chapters. If your final container is Matroska than you can also use ordered chapters.
You could create for each episode an Edition.

OR you could also create very very small episode.mkv's which uses linked-ordered chapters to play the content from the big.mkv.