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I remember reading somewhere that Firewire was not a good conduit for HDTV as it couldn't pass the signal - and that something like HDMI was the necessary choice for HDTV.
Actually, I've read that too (I think maybe in Widescreen Review once), but I've never seen a good argument to support that claim.
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I'd like to think that I'm not losing my mind, but I certainly don't claim to be an authority on the subject.
You're not losing your mind. In this day and age of everything being delivered via lossy compression, the idea of experiencing uncompressed audio and video is a romantic notion that pops up from time to time. Unfortunately (except for things like DVD-A, which is losslessly compressed) it ain't gonna happen! Sorry, but even something as humble as my family snapshots have (more often than not) gone through lossy JPEG compression at some point. Like it or not, it's the future.

Best,
Sanjay
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Sanjay