Actually, I hear LESS clarity overall with processed sound (PL II or Logic 7), compared to bypass. In fact, this goes for most signal processing, audio or video. For example: even the top of the line Faroudja video scalers still soften the image slightly compared to how the video signal looks with the processing bypassed. However, since all A/V is a compromise of one sort or another, you have to decide if the processing is worth the slight (and I mean very slight) loss of resolution.

In the case of Faroudja line doublers, I'd gladly sacrifice the last little bit of clarity to get a smooth image with no scan lines. Same with matrix decoding for 2-channel audio sources; any slight loss of resolution is more than compensated for by the added immersion that PL II brings to the presentation. In both cases, the audio and video described above, the processing is worth it because it me feel more emotionally involved in the source material.

And isn't that the point of this whole hobby?

So anyway, let me explain what I meant by my statement (quoted above). I listen mostly to rock/pop music. The "vocal clarity" I was referring to is in some part probably due to the fact that the voices come from only one speaker, thereby reducing any comb filtering problems that might occur with mono information (vocals/dialogue) playing over 2 speakers. I've done a lot of switching back & forth between Bypass (2-speaker playback) and Process (7-speaker playback), and have consistenly preferred the way voices sound with the processing turned ON. The surround speakers may also be contributing to the almost-palpable quality I hear in the voices. They sometimes sound like they're physically coming "into" the room.

Same with the "better soundstaging" I mentioned. With bypass, the soundstage seems to extend out past my speaker, though not by a whole lot. And, if I move around in the listening area, the central portion of the soundstage kinda "travels" along with me. I guess that's unavoidable when you're relying on so much on phantom imaging. However, with Processing engaged, the imaging is rock solid and stable; I can slide all over my couch and any sounds I hear seem to stay where I left them. As for soundstage size: wow, where do I begin. This is where I really appreciate what surround processing do for music. The soundstage not only extends way, way out past my speakers; but there's also tremendous front to back imaging. And I don't mean gimicky fly-overs. I mean I've heard sounds image a few inches in front of my face as well as being fooled into thinking that sounds were coming from way behind my centre speaker. I hear some of this with high quality 2-speaker playback, but never to this extent.

Best,
Sanjay