That is a tough one to answer.
If you go digital you are using the DAC's in the receiver and if you go analog you are using the DAC's in the player.
Try both and see what sounds better to your ears.
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Epson 3500 3D projector
93" Carl's Place Flexiwhite DIY screen
Outlaw 976 Pre/Pro
Outlaw 7500 for LCR & L/R surrounds
1- Emotiva Mini X-A100 for rear surrounds
2- Outlaw LFM-1 EX subs
Oppo BDP-105 Blu-ray/DVD/SACD player
Outlaw LCR (Snell Labs) for center channel duty
Tekton Lore monitors L/R
4- Emotiva ERD-1s surround speakers
Monster HTS3600MKII power center