Just to add one more twist to the mess, the HD-DVD and Blu-ray players seen to date have typically offered an interesting trick: take a Dolby Digital Plus or TrueHD track, decode it, and then re-encode it at maximum bitrate DD or DTS. (Toshiba's HD-DVD players have used DTS at 1.5mbps, Sony and I think some other Blu-ray players have used Dolby Digital instead.) We pretty much never get maximum bitrate Dolby Digital or DTS because of the disc space it takes on a DVD, but doing this allows players to connect to DD/DTS receivers using coaxial or optical and offer something very close to the performance of the original audio formats. Extra bonus here: getting a DTS 5.1 or DD 5.1 track via coaxial or optical allows receivers to employ their full DSP bag of tricks, meaning time delay, bass management (the 1070's quad crossovers are far more customizable than anything you'd find available at the multichannel analog output of a player), and surround processing such as Pro Logic IIx to get 7.1 from 5.1 sources. I've heard folks who actually have HDMI v1.1 setups with HD-DVD and/or Blu-ray say that they'd prefer this approach over multichannel analog when using a good receiver or surround processor.
Oh, the STF-3 would really enjoy a 1070.