Far from extinct. Check out my HDMI FAQ and look at HDMI 1.3 (which it now appears will be formally released in the near future - I'll be updating at least a little in the next couple days). HDMI 1.3 will allow audio decoding to shift back to the processor. Plus you've still got regular DVD's, cable/satellite boxes, CD's, and other sources that still output PCM stereo, Dolby Digital, or DTS that the processor decodes. And even with HDMI 1.1/1.2, the processor handles bass management, time delay, switching, additional processing (taking the decoded multichannel PCM from an HDMI 1.1/1.2 input and expanding to additional channels if it isn't already 7.1), and lastly D/A conversion. Plus, of course, video switching at the processor is steadily expanding to include transcoding (s-video and composite video up to component, with a few units starting to support transcoding component to DVI/HDMI digital), and even in a few pricey cases (the Anthem AVM-50 and Statement D2) video scaling and processing that applies to all inputs and is far more advanced than what an HD-DVD or Blu-ray player will do.