On the other hand, committing to an entirely new, all-digital design could actually reduce costs comapred with a 3-way, all analog ICBM.

Discrete, high-sample rate ADC/DACs with all processing done in the digital domain would open up a whole world of possibilities, beyond just bass management and time alignment. Perhaps some equalization, too. With the wide availability of truly hi-res DACs out there, this seems like a product whose time has come - I'm sure some owners of really high-end SACD/CD players, outboard DACS, etc., might balk at the prospect of re-digitizing the sound from their expensive analog stage, but the vast majority of us with budget to midfi components would be more open minded. HArmon Kardon is approaching their 6-channel bass management this way with their newer, higher-end recievers. I wonder if anyone has heard one of them, and how the system sounds?

BrianB