07-08-09: SrwootenNope, for two reasons: economy of scale and high resolution source trumps lower-rez plus processing.
Great Hi-rez sound from the analog outputs from a $200-300 BR player seems doubtful at best to me compared to what your Rotel should be capable of.
Panasonic can build a $300-350 Blu-ray player that performs to a high level. A $300 Blu-ray's picture is certainly better-looking than that of a $5000 std-def DVD player. The same goes for the sound. The Rotel's higher build quality can't overcome the fact that it's decoding a very lossy surround scheme while the Panasonic is putting out a lossless signal.
When Wes Philips in Stereophile reported on hearing Dolby TrueHD processed through an Onkyo AV receiver a couple years ago, he stated that it was the best-sounding surround playback he had ever heard. Wes is no stranger to expensive, esoteric gear, and yet a lossless source, even when played through a mass-market receiver, trumped std-def DTS or Dolby Digital he'd heard through cost-no-object components.