I don't know if this has been discussed, I can't find a thread about it.
If not, I hope some of the insiders may be able to answer.
With HDMI 1.3 it's possible to transfer the new audio codecs in there native bitstream form, but:
This is only possible if the audio tracks are made in "Basic mode" without any interactivity. If they are made in "Advanced mode" it can't be trasmitted as bit-stream because of the real time mixing has to be made in PCM, therefore it must be decoded in the player first.
So far all HD-DVD's are made in "Advanced mode" but not Blu-ray, but they will be with upcomming titles with interactivity.
I know it doesn't effect the sound quality, that the sound is output from the player as PCM, but it does raise some questions, as why do we even need A/V receivers with decoding capability, when it's impossible to transmit the tracks as bitstream.
So the final question does anybody know, if bitstream transmission is going to be possible on future Blu-ray titles with interactivity?
If you wan't to know more read here, they have made a good article about HDMI 1.3:
http://www.highdefdigest.com/news/sh..._Necessary/853