Bruce,
I've encountered the same issue switching digital audio sources, but I don't normally use the 970 when watching TV. I've run into some problems with dgital audio signal acquisition and will get no audio like you report. I think this is an issue with the 970's architecture. If I regularly used it for cable/satellite I would probably be looking for something else (my wife wouldn't tolerate it either!)
I primarily use the 970 for analog music listening and watching movies. If you aren't cycling through digital audio sources (channel surfing or simply changing channels on cable/satellite) it works well enough.
If I do upgrade in the future for HT I'll likely purchase a receiver for use as a preamp and perhaps keep the 970 for 2 channel audio use.
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HT:
Pioneer VSX-1120
Salk Songbirds, SongCenter, SongSurrounds
Panasonic BDP-45
Outlaw LFM-2
2 Channel:
Red Dragon M-500 monoblocks
BAT-VK3i
Salk HT-1TL's
Apple TV
Beresford 7520 DAC
Surgex XS10