Originally Posted by GGA
It is apparently "against the law" to output unencrypted audio from an encrypted HDMI source. M is trying to get around this by using MHR.
Exactly.

Originally Posted by GGA
Does this mean that anyone with non-M digital speakers or outboard DACs is not going to be able to transmit high rez digital audio? If the signal is down rez to 24/48k can it be transmitted? [Second thought: I think nearly all high rez movie tracks are still at 24/48k].
Yes, down-rezzed two channel is available at the digital bypass jack

Originally Posted by GGA
The Tact TCS3 shows 8 channels of AES/EBU or S/PDIF outputs. Theta says that they will also output digital audio. But both products are unreleased. What are they thinking?
I am not familiar with Tact's and Theta's architectures, but they cannot output unencrypted hi-rez digital audio.

Originally Posted by GGA
With the increasing popularity of digital speakers has HDMI boxed itself into a corner with this issue?
The digital speakers would need to accept an HDMI input. Decryption inside the box is what matters.

561, DSP5500s, DSP5000C, analog sides and rears