XenonMan: It's not complicated at all, though I may be trying to make it so.

Right now I am using an Oppo 103D as a playback device, surround decoder, and speaker manager (bass, level, and delay), with the analog outputs driving an old Outlaw 990 that is being used as a glorified volume control and unbalanced to balanced converter (since I have long runs to my rear speakers with co-located crown amps). No processing on the 990 at all. Has worked like a champ (originally in more demanding roles, switching component video, etc.) all these years. I run an Nvidia Shield through the HDMI input of the Oppo (albeit at 1080p60) for streaming content -- the streaming apps on the Oppo are buggy as hell, not having been updated. I, for one, am glad they left them OUT of the 203/205.

Upgrading to 4k would be as simple as replacing the TV, upgrading the Oppo 103D to a 203 or 205, and the 990 to a 976.

But, here's the thing: that limits me to whatever room processing the 976 offers. Yeah, a 10 band parameteric EQ is nice, but I might want more, like Direc Live, for example. Normally, that sort of room processing is done in the A/V processor: Direct Live on Emotiva, Audessey on others, proprietary on others still. And, it adds a LOT of $$$ to the cost of the A/V processor, often with compromises in other area. The Emotiva XMC-1 is $2500, the Anthem AV-60 is $3000, etc. I'd really like to separate the room processing from the surround decoding (Dolby or DTS formats), and speaker management (bass, level, and delay). That's where the complexity comes in.

There are generally two ways to do this: after the A/V processor, with an analog connection, with something like a miniDSP DDRC-88A ($1000 for Direc Live), or before the A/V processor, completely in the digital realm (miniDSP nanoAVR for speaker management, and nanoAVR DL daisy chained for Direc Live). The nanoAVR can also do custom parametric EQ and is REW friendly in that regard. Direc Live has the advantage of offering FIR filters as well as IIR ones. There's a catch though: because they don't have Dolby or DTX licenses, the audio presented to them over HDMI (1.4, I might add) has to be LPCM. The Oppo disk players have AVR HDMI 1.4 outputs as well as TV HDMI outputs (1.4 on the 103D, 2.0b on the 203/205) that can carry DECODED LPCM audio to the AVR. So, the idea is to use an Oppo disk player BOTH as an A/V source AND as a surround format decoder, so room correction can be done BEFORE the AVR instead of after, incurring an AD->D/A step. When one does this, one should ALSO do speaker management BEFORE room correction. The Oppo can do this, but only through it's analog outputs. Then the AVR decodes LPCM audio, and does not speaker or room processing. It's a glorified volume control.

The devil here is that the Oppo 203/205 have some problems with their HDMI INPUT regarding not passing through HDR (and probably not HLG either), as well as A/V sync issues. The Oppo 103D is not reported to have the A/V sync problems on its HDMI (1.4) input (HDR and HLG not even supported).

Again, using a DDRC-88A after the 976 with an analog connection would be much simpler. It's just one more piece of equipment (and can do bass and other speaker management as well as Direc Live, though there's no reason not to let the 976 do speaker management in this case). Doing room correction BEFORE the 976 requires (a) surround decoding, (b) a nanoAVR and nanoAVR DL, as well as an HD Fury AVR Key to split HDMI 1.4 audio from HDMI 2.0b video and audio (this costs about as much as a DDRC-88A), and (c) an HDMI 2.0b switch (since we are now switching BEFORE the 976). Given the flaky HDMI 2.0 input on the Oppo 203/205 I'm seriously considering using the Oppo 103D to do audio decoding (the AVR Key can send black 720p or 1080p video on the HDMI 1.4 "audio only" port).

HDMI issues usually come down to two things: HDCP and EDID. Good switches aren't a problem, and the AVR Key and nanoAVRs don't even process the video: they just generate black or pass it on. A/V sync is usually handled where the audio is first processed. Instead of accommodating the processing delay of the display, one does that as well as any down stream "audio only" HDMI devices which usually add little to no latency (and actually make the sync job easier).

So, it comes down to whether I want to (a) settle for room correction in the 976 (a good start), (b) add a DDRC-88A after the 976 with an analog connection (easy), (c) try to do speaker management and room processing BEFORE the 976 (somewhat trickier, but about as expensive as using a DDRC-88A, given I HAVE a surround decoder in my existing Oppo 103D, and just need an HDMI 2.0b switch).

The processing steps are source(s) -> switch -> split audio and video (video to TV) -> decode surround formats -> speaker management -> room correction -> D/A.

By relegating the 976 to the last step I can change the speaker management and room correction system AT WILL.

The "normal way" of course is source(s) -> AVR(switch -> split -> decode surround formats -> speaker management -> room correction-> D/A) with the 976 playing the role of AVR, letting me only change room correction via an analog connection as an afterthought.

If I could have my dream AVR, it would allow an HDMI audio "processing loop" where speaker management and room correction could be done, with, perhaps, some basic internal, defeatable, implementation of same. I eye the second HDMI out and non-HDCP2.2 HDMI in on the 976 with much suspicion in this regard.

Am I bat sh*t crazy for thinking this way? A top notch HDMI 2.0 (maybe "a", possibly "b") AVR with serious room correction, runs around $2500 (XMC-1) to $3000 (AV-60). The 976 is $900 ($800 to me 'cause I have a 990, thanks Outlaw), $1400 to $1900 cheaper. That's significantly MORE than a DDRC-88A or a nanoAVR, nanoAVR DL, AVR Key, and HDMI 2.0b switch and a lot less flexible.

I almost think there is a market for an HDMI "A/V splitter", HDMI "video processor", HDMI "surround decoder", and HDMI "DAC", allowing any type of room correction to be added between the last two. Combining the first three might make sense, with BASIC speaker management and room correction bundled with the surround decoder, but people tend to be picky about their room correction and DACs. If you combine all of them, then PLEASE provide for an "HDMI audio processing loop" between the last two.