Don't fear the analog connection! Done properly it does sound excellent. I continue to use a "dolby digital ready" receiver (Sony GA7-ES) in my system so I have never used a digital connection from my DVD player (Sony DVP-C600D) for DD. I cannot directly compare the sound of the analog connection to the digital connection but I can tell you that it sounds very dynamic and transparent in my system. When I select the 5.1 mode on the receiver, it routes the audio directly though the volume pot to the amplifier stage, very much like a high-quality 2ch integrated amp would do on stereo only it's getting a 5.1 signal.
The big argument against decoding 5.1 surround in the player early on was because of limited bass-management on the earliest DVD players. The Sony C600D addressed that issue and was the first player where the decoding was on par with the receivers of that era (late '90's). The clean decoding for DD (96/24 DACS) coupled with complete bass-management and a high-quality analog output stage earned the player excellent review in Home Theater magazine and has never caused me to want to upgrade. I invested in a good power amp instead (Arcam Alpha 10P X 3 channel) and my system rocks on movies.
If I do decide to go BluRay I will probably buy the Sony 2000-ES for similar reasons - quality analog stage and decoding- and it would drop right into my system without replacing the receiver and amp. I route all video directly to the projector anyway so I can live without HDMI in the receiver. I'm waiting to see if the next version of the model Sony 2000 player will decode DTS-MA like the new Sony 550 player. That would be a nice upgrade indeed. Now, if they would also include multi-channel SACD/DVD-A capability as a bonus, that would be sweet! Are you listening, Sony? -jz