H.264 doesn't pair with PCM in MP4/MKV wrappers.
I only have PCM on the lossless masters, for later restoration. By the time it sees H.264 (or often MPEG), it's already been restored (if needed). The main issue is having a high enough bitrate that doesn't alter ambient sounds (hiss, etc) to digital noise. Sometimes, like when hiss is present, I just go insane on the audio bitrate. 448kbps, probably more than double needed, just in case.
But 4:2:2 from start to end? Yep, very sound.
After prodding from sanlyn and some others at VH, I've even started to deinterlace out to 59.94/50fps. Again, it's not a huge file size change. Some years ago, there were reasons to keep 29.97 as deinterlaced 29.97 -- and noting that 29.97 still doesn't really "throw away" much/any data (as the frames are all rebuilt). But with bandwidths and HDDs as they are now, 59.94/50 is maximum SD long with Full D1 720x480 (which is also technically overkill for VHS). It may give better motion at times, maybe, so why not?
You go even more overkill, doing 10-bit SDI processing on a signal that is 6-bit dithered at best.
Crank it to 11.
No reason not to, when not constrained by specs.