Re: 400 amp service
That's true, that's why I said that it works best with a fairly steady load. It doesn't work as well if the load varies widely from low to high. It also doesn't work well for a large motor with a high starting current. But for a fairly constant load, it works pretty well.
The cost of the transformers and the length, size and installation method of the feeder will usually determine whether it is a cost effective approach.
It is sometimes a lot less expensive to upsize a smaller feeder operating at a higher voltage to control voltage drop than it is to upsize a much heavier feeder operating at a lower voltage.
Sometimes it is a lot less expensive to upsize from, say, 3/0 to 4/0 (or maybe even #250) than it is to upsize from 500 to 750. You just have to run the numbers, considering all of the variables, to see. Plus, you may be equipped to pull #4/0 where you aren't able to pull #750. Big wire and pipe are expensive. Or you may want to do smaller parallel runs.
There is no magic bullet that makes the effect of distance go away -- either way, you'll have to deal with voltage drop to some degree. But with a steady load, using the transformer taps can help.