As I am running strictly 2-channel I have Sky set to two channel output in Sky setup. Under those conditions, I presume it puts out the higher bit rate over coax/optical?
Yes, I believe so
As long as the "Optical / Coax Out" setting is set to "Stereo" rather than the more typical DD, then it will output the 2ch stream
There is a problem on most of the movie channels though, in that if you look at the Info text, the "Stereo" stream is actually "DS" or Dolby Stereo, which is akin to Dolby Prologic from legacy VHS Tapes
For a 2ch system, then setting the Optical out to Stereo would be best IMHO. For other users, especially those with HD621's, it's worthwhile comparing the 2ch Audio over HDMI versus the MC Audio Coax/Optical output, to see which they prefer