I agree that processing (not to mention post-processing) modes in general can be somewhat confusing, especially for casual users. My suggestion for virtual input configuration in terms of signal processing would be to default configure all of them with a "auto" setting for audio connections and passthrough for all video connections. Assuming the user can accurately map their source connections to the virtual input, they should at least get usable signals to amps and displays. Using this as a baseline users can learn, experiment, and tweak until they get the sound and picture they desire. Of course, the manual should convey what processing is applied by default for a given signal type.

Further, though configuring various parameters per input might seem complicated if implemented properly it's actually not hard to do. Again, I'll give kudos to the Theta Casablanca. Despite having a ton of configurable options in multiple menus, they designed it such that you can configure anything in any menu via three buttons (two opposed arrows and enter). They also cleverly designed the menus to focus on what your configuring while hiding the rest.

By the way, if sounds like I'm a Theta fanboy well, I am-and I'm not. The Casablanca is beautifully built, offers superb sound quality despite its age, and has been upgraded over the years. However, support for hdmi and the hidef audio codecs for movies literally became available just a few days ago. Then there's the issue of price... To give you an idea, the upgrade price to get hdmi v1.4 for the Casablanca will be 5k. This is more than three times what I suspect the 978 will sell for. By the way, the 5K price for hdmi assumes you have a Casablanca III. If you own older versions of the Blanca and I read the upgrade announcement correctly, you won't be able to upgrade it. Rather, these individuals will get UP TO 5K in credit for a new Casablanca III HD (the name of the hdmi-equipped prepro). Price of a new Blanca III HD: 15-20K depending on configuration. Even my current Denon AVP at 7.5K retail (and I didn't pay retail) is a bargain by comparison as it is competitive with the Blanca in terms of build and performance IMHO.

I think you see where I'm going with this. I'm lurking in the 978 forum because I suspect it's going to be my next prepro. Though I enjoyed my Casablanca and Denon AVP, I'm getting to a point where I value value most. I've never had room for dual systems (dedicated music and HT), so I've always needed a prepro that could do both well and my aforementioned units delivered. However, I also owned an Outlaw 990 previously (it replaced the Casablanca in fact) and I have to tell you that I found it musically satisfying and more than good enough for HT. Thus, if the 990 was enjoyable years ago, the 978 should be even more so and that's my point. I don't need the ultimate prepro anymore. I just need one that's good enough and I'm confident the 978 will be exactly that. FWIW, I'm currently using a 7700 power amp and I'm very happy with it.