---Summary---
You should definitely include DSP modes. You'd be wise to limit them to modes that sound good and are user adjustable.

---Marketing---
Outlaw is not aimed exclusively at 2 channel fanatics who despise DSP modes on principal (though there seem to be a few on this forum).

All magazine reviewers mention whether a piece has DSP modes; some are dismissive, but why risk missing a check list item of a reviewer or potential customer? Your (higher priced) competition from Lexicon is known for DSP modes - if the comparison won't make you look bad, you MUST include DSP modes.

---I Like DSP. No, Really!---
Finally, I may be the first to publicly admit this, but I USE DSP MODES. I have a Yamaha DSP-A1, and it has a zillion modes, all extremely adjustable, some which make music sound like mud, but some which make the music absolutely come alive. The best way to demonstrate this is to find the right mode for the music, then turn jump to plain stereo in mid-track. Where did the depth and vibrancy go? The room suddenly got smaller! (Note: the Yamaha uses an additional 2 front speakers to recreate ceiling reflections). I listen to jazz, fusion, or Dave Matthews Band in a modified Roxy DSP mode. Eagles and James Taylor DVDs get the Concert Video mode (on top of DTS or Dolby Digital). Orchestral music gets straight stereo or a nearly reverb-free adjusted version of U.S. Hall 4. Most movies get 70MM Adventure 2 (on top of Dolby Digital or DTS) which really makes my smallish room sound like a bigger venue. Movies with dialog in the surrounds get straight Dolby Digital or DTS.

---Conclusion---
So, if you can provide good DSP modes, by all means do so. I'll use them. However, if the best you can do are non-adjustable "hall" and "stadium" modes equivalent to those on a $500 Sony receiver, then don't bother - just include DPII's music mode and DTS Neo:6 music mode and call it a day. In any case, make sure you include discrete codes for selecting specific modes. Offer an option to hide them in the menu for those who don't want to see them.

***And make sure there is a Re-Eq mode for movies.***

-avi

P.S. A "bathroom" mode sounds silly, but might work well for video games - so if you're going to include this type of mode, name it appropriately.
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Regular home theater / consumer electronics column posted at http://www.greengart.com .