DAC with Home theater bypass

I've not heard of this being a common feature in a DAC. Are you sure you don't mean a preamp or integrated? That feature is relatively more common there.

The Parasound P7 has multi-channel inputs, so you can run a processor or DVD/BluRay player through it.

Best,

E

If you do not use analog inputs, several dacs are available which have a volume control.  This eliminates the need for a preamplifier.  I have a wadia 321 which does this however does not have HT bypass.   I think the (Wyred for Sound)  Dac 2 is an example that also has HT Bypass and volume.    A preamplifier containing a dac would also work.  The Peachtree Grand Pre is an example that has a dac, preamp and ht bypass.  I'm just surprised there seemingly are not more to choose from.

My Benchmark DAC2 HGC has Home Theater Bypass as well as a Digital Pass-Through. Their newer DAC3 also has these options. You can DL the manuals at: www.benchmarkmedia.com

My Benchmark DAC3 also has Home Theater Bypass it is very useful - you can listen to the DAC powering the main front stereo speakers directly (via a power amp) for optimal stereo music sound and then switch to your lower quality 7.1 system with its DSP preamp (I use Onkyo Pr-Sc5509) for a movie or concert with the DAC in bypass mode (the D to A being done by the DSP for all speakers and with the DAC providing analog unity gain to just the front stereo speakers)

The DAC 3 was released late last year - so it meets your criteria of a recent DAC. It measures better performance than anything else on the market but whether it sounds right for you is only something your ears can decide.