Just how obsolete are DD and DTS?

The answer, quite simply, is yes. THX certification means nothing more than it having been MIXED properly to meet specs. Substantially less important on the video side of life than the audio. Even the audio side is given FAR too much credit for THX certification. There are many amplifiers, where not THX certified, are FAR better than the THX specs.

Now, what you will miss with a processor/decoder/receiver that is not THX certified, and you play a DD/DTS signal is the THX reequalization. What this does is 'even the playing field' and take the very highs out from the DD/DTS signals and increases the voice signals. THX was designed to help ProLogic recordings and not necessarily DD/DTS.
There are newer formats that will help, but it basically makes the sound less harsh.

At normal listening levels you will not hear any differences.

So, get a DD/DTS processor and don't worry about it. If you do not like the 'harshness' of some DD recording, buy a processor that has THX circuitry or a Yamaha (others I am sure) that does Cinema RE-EQ, same thing. For video, it means nothing. All DVD players and LD players will play a THX piece of software just the same.

Dan

THX was basically junk to start off with and that is why the other formats arose. It was easy to improve upon a flawed medium. As such, i would not worry too much about THX and look for the best DD / DTS processor that you can snag for the money. After all, most of these processors DO have tone controls if you find something slightly "edgy" sounding. Sean
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THX means marketing buzz words to impress, and more $$$ for George Lucas.