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Audio Processor Advice -- Can I do without HD Audio?

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Moving on here and about to purchase some new equipment.

I get a new flat screen TV. I get a Blue-ray player (although DVD seem to me quite adequate for the 42-46 inch screen size I am contemplating.

Connections:
DVD Player: S-Video to TV, Toslink to Dolby-EX receiver.
Blu-Ray: HDMI to TV, Toslink to Dolby-EX receiver.
TV Audio: Toslink to Dolby-EX receiver.

Of course, once I have the Blu-ray player, the DVD player is unecessary.
I am also counting on Blu-ray to provide Dolby digital outputs (not sure what standard receiver is on, but seems to have everything except HDMI).

Transition path seems good to me. So, why are all these 7.1 home theater receivers being dumped??

(The next question is going to be another good one for me. When I upgrade to HD Audio, do I then throw away all that Toslink stuff that I have invested in??)

Follow Ups:

RE: Audio Processor Advice -- Can I do without HD Audio? - pictureguy 21:26:52 03/28/12 (0)
You can always go 2ch and transmit the PCM audio to a DAC than a good stereo. You can buy a much better 2ch system for the same coin you were dropping on 5 or 7.1

My PS3 is setup to sent PCM to my DAC and sounds wonderful......
Too much is never enough
well - Joe Murphy Jr 17:00:11 02/29/12 (4)
The new audio formats, DTS-HD Master Audio and Dolby TrueHD, will not transmit via TOSLINK. The player, depending on what soundtrack is available, will send either DTS -- lossy -- or Dolby Digital -- lossy -- over TOSLINK for surround output. The new audio formats need HDMI for lossless transmission.

"When I upgrade to HD Audio, do I then throw away all that Toslink stuff that I have invested in??)"

No. You either sell it to recoup a few $ or give it to someone. And that goes for the DVD player as well.
- don't be too quick to chuck the DVD player... - bassbinotoko 21:52:41 02/29/12 (3)
  The high-def players I've used (Blu-ray, HD-DVD, WDTV Live, PC software players) have not been as good as my HDMI DVD player when it comes to smooth rewind, fast-forward, and single frame viewing. So, it stays connected, even though there's 4 other things that can play DVD in the rack.
  - good advice, but to the wrong person [nt] - Joe Murphy Jr 10:40:57 03/01/12 (2)
    .
    - RE: good advice, but to the wrong person [nt] - jdodmead 16:45:34 03/01/12 (1)
      no reason not to go BD, prepare to be amazed going from s video to high def.
      What took you so long?
      Jeff
      - you both need to learn how to post comments [nt] - Joe Murphy Jr 06:40:58 03/02/12 (0)
        
        In Reply to: RE: good advice, but to the wrong person [nt] posted by jdodmead on March 01, 2012 at 16:45:34
        
        .

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