Outlaw's analog interconnects (the "PCA") and optical digital interconnects ("PDO") are available now -- I'm looking forward to trying them out in my system (placed my order for a 0.5m PCA pair and a PDO this morning, in fact). From what I've read about the PCA, the method of construction (twisted pair) is not compatible with video or digital audio signals, which means they would have to design a separate cable to handle digital coax.

As for the coax vs. optical debate, I've heard the same "coax is better" you have. Personally, I've tried several different coax and optical cables (including using a DVD player that offers both coax and optical, so the hardware is consistent throughout). The only cable I've ever found that seemed to add anything to the quality of the digital signal was a TMC White Label cable (which actually seems nicer sounding for digital coax than the slightly pricier Yellow Label); every other digital cable I've used (Monster and BetterCables, coax and optical from both) has been almost identical to the others. I like coax more when I use the White Label, but I was never able to tell the difference between coax and optical otherwise. Hope that helps.