I did not mean for you to take this so personally, Iplaynaked. I note your experiences, respectfully, but let's talk about "5. DD/DTS Decoding" for a bit, independently of all previously mentioned variables. That is, assuming all DAC's were equal, no additional THX processing applied, etc., I am merely stating that I don't logically see how there could be any difference where the formats are decoded, using DD/DTS supplied algorithms. Especially in this day and age when I could assume all processors should be perfectly capable of decoding lossy formats without fault. That may be debatable (although to a night and day difference??).
Now on the point of DAC's, I agree. DAC's often are more capable in the receiver end, and I suggest that your esteemed reviewers might be hearing this and not the format decoding. Or it could be that the average Best Buy receiver and/or digital processors (like the Anthem) have relatively weak analog stages. And by the way, Nick, the source dictates the sampling rates; pre/pros could upsample after they decode bitstream to PCM.
It's not like I have a problem with digital, though, really. What gets me into using analog, even today, is a little problem I have to HDCP (content protection with HDMI). Unfortunately, since HDMI is relatively new technology, especially to "audiophile" products, there still needs much ironing out of handshaking problems, and relays, which introduces pops in some products, in my experience. My main reason for considering analog connects is so I could get 7.1 lossless out of the player, and into an old fashioned, proven reliable, pre/pro. When it comes to lossy DD/DTS, I could just use s/pdif or optical, but then I would have redundant connections (analog for blu-ray, digital for dvd's), wouldn't I? It makes sense to use only one or the other, only with digital besides HDMI, you cannot transport lossless thanks to content protection!
My only other reason, besides faulty HDMI products, is it makes sense financially! I'd like to clarify that when Blindjim says analog audio increases costs "eight times or even six times more just for audio", he is presumably talking about the cost of the cable, which is dimes on the dollar compared to the cost of the pre/pro and the player. The options you have nowadays are:
1. Buy an HDMI receiver used or new and have it depreciate in value 50-70% in the next 5 years, and a good, cheap, player. Upgrade said receiver when new formats come out.
2. Buy an already depreciated analog receiver that might have been SOTA a couple years ago, and a good player that supports analog connections for $500-700, like the new Oppo. Upgrade only the player when new formats come out.
Cable costs are a one-time affair. A quality cable can be used for lifetime.
I should add that I was very interested in the Cary 11A, but can't afford $3.5k at this point. I'll probably pick one up later when it starts showing on Audiogon.