Well lets try it again...
1. Its not about a BD vs HD-DVD competition--the market will settle that.
2. Actually I didnt see any analog outputs being used in the hi def demos at CES. What I saw was HDMI interconnects.
3. Almost nobody has a 7.1 surround system in their homes. Some do. But very few. 5.1 is what is prevalent in HT set ups and all of those HTIBs sold every day at the big box retailers.
4. I like analog myself. But very few folks are going to buy and hook up 7 analog connections, a sub pre-out, and an HDMI as well. How silly. Also, there is discussion as to whether analog audio will be available when HDMI is in use at the same time. Moreover, almost NO ONE has analog channel inputs on the receivers for speakers. They are out there but very few.
5. Therefore, in the big picture, unfortunately, analog audio outputs have no relevance at all. Its gonna be HDMI whether we like it or not.
6. The only way Hi Def DVD, for audio and video, eclipse todays offerings is if; 1. You own a true native 1080P display. 2. You own a true 1080P player. 3. You have HD-DVDs/BD by purchase or rental. 4. You have the correct HDMI chipset in your player and display. 5. And you have an HDMI interconnect. 6. And you have a firmware updated receiver. Cost?- At a minimum--6500 bucks.
7. Right now, the availability to set that up is non-existent. No content and no hardware. But it will come on board bit by bit over the year I am sure. And it will be, price-wise- out of reach for 99% of the consumer population of the United States.
8. Nobody can hear any difference between the new audio formats and the old ones, the reason is that there is no loss of data in most DVDs today becuase the current technical limits are sufficient to carry the audio engineers creations as mixed. Simply put, the new audio codec doesnt add much if anything in most films/movies.