Will- I hope we would both agree that:

1) There is nothing intrinsically better or worse crossing over digitally vs analog-ly.

2) It is better to cross over in the native format: PCM for DVD-A (or MLP) and CD, DSD (?) for SACD, analog for lps, tuner, or the analog outputs of a DVD-A/SACD player that has no internal bass management.

3) Doesn't make a whole lot of sense to do an A-to-D conversion, then bass management, then a D-to-A conversion if the original format was analog.

There are obvious benefits to doing it digitally such as being able to adjust channel levels, time delays, DSP processing, etc. But. All these things can be done with analog circuits just as well, just that it's more expensive.