It's an architectural issue.
You have a distributed architecture in the 568.2MM/G68/861. There's a DSP on the digital receiver, and it can either decode or upsample, it can't do both. So if it receives a bitstream it decodes from DD/DTS/MPEG, if it receives PCM 48K or lower, it upsamples.
Then the DSP on the digital receiver passes on to the DSP core.
Regards,
Surround Music Fan/Computer Geek/Curmudgeon in training. --- 861v4, HD621, Panasonic BD-P55K, Toshiba HD-A35, Oppo HD990, Dish Network 622, Pioneer DV-668AV-S w/ DVD Upgrades mod, EW Fontaine II (x5), Velodyne DD-15 (x2), Seymour AV Ice blocks (x7)
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