When a Discrete digital input on a Meridian controller is used, the controller provides no +10 dB offset as this is anticipated to have been applied by an upstream surround decoder.
That's what I figured: the "Discrete" preset does nothing at all to the signal (LFE is at -10dB vs. the "Cinema" preset).
In the case of a Meridian source, the decoding and offset (if required) would be done by the DVD player.
I'd hope so.
Dolby Digital (and one hopes DTS) have flags in the originating bit-stream which would identify film material from other sources such as music. This flag tells the decoder whether or not to apply the +10 dB offset or not.
I'm not sure this is possible with the latest Meridian processors, because with the 861v4 preset model (also used by the G9x and 568 v2.5), decoding is separated from the preset. Yet it is the "Cinema" preset that appears to apply the +10dB boost. What I'm getting at is that, with any DD/DTS music with the LFE channel at -10dB that is decoded by the processor, the "Cinema" preset must be used rather than "Discrete".
Of course, this is where the Meridian DVDA player + SmartLink comes into play, because the SmartLink metadata will tell the processor what type of disc the (decoded) PCM came from (Music6 or Movie6), so that the processor can apply the correct default preset.