There are a few reasons why it's best to deliver digital audio to the receiver. First, you have the option to use processing modes like Pro Logic IIx. Pro Logic IIx is useful for sources like cable and satellite, but it's also good for Dolby 2.0 DVD's (older movies, a lot of TV on DVD) and for generating a surround back channel from 5.1 material - I use it pretty routinely with DVD's. Second, receivers generally have better Dolby Digital and DTS decoders than DVD players. Third, DVD players lack Dolby EX or DTS ES decoding (making it impossible to make use of the benefits of EX and ES soundtracks). Fourth, most DVD players have only rudimentary bass management with a fixed crossover (sometimes 80Hz, sometimes something odd like 120Hz). In the case of the 1070, you have the 80Hz analog crossover or the digital bass management on the 7.1 direct input, but to use the digital bass management you're adding a layer of analog/digital conversion that you don't have to have with DVD-Video.