Don't forget that SACd would be analog connections. I also have a Panny Blu Ray that I could use the internal processors and analog out's for some enhanced HD audio.
The anolog inputs may or may not use an extra a/d to d/a conversion depending on how it can be set up. My HK avr 7200 can be used either way with 8 channel straight anolog or 8 channel a/d to d/a. Straight anolog does not utilize digital bass management wich may improve some speaker/sub crossover arrangements.
As for DD proccessing, I prefer the HK over my Marantz DV8400. It is more agressive and a bit quicker which I find apealling for movies. With music I prefer straight anolog without any a/d to d/a conversions for both stereo and multichannel.
If you want to use the processing in the processor, you will need to redigitize the analog signals and then, of course, convert them back to analog for output to the amp. Better to use the digital (HDMI) output and let the processor do its DSP and bass management.
The only way to take advantage of new audio formats with the Sunfire is through the anolog outs of your bluray player. If you want to keep the Sunfire I would get a bluray player with quality anolog outputs such as the Denon for 2k or at least the 1k Pioneer elite.
The other option is a new processor and a player that will output the new formats as bitstream. This is probably the best solution feature and sound wise depending on what you get.
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