Right. So what happens when you put another HDMI repeater device downstream of the pre/pro, specifically a 976 or even a 975?

We know the pre/pro can send 2ch LPCM to the TV, regardless of what it receives (whether it reencodes the audio or takes the first two channels). A lot of pre/pros will only send 2ch audio from the current source or other analog sources via zone 2 HDMI.

We know the pre/pro decodes bitstream formats to LPCM and probably does bass management, level, and delay in the digital domain so as to have 7.1ch available, after all it needs it for itself prior to volume control out the analog outputs.

The question is: if a downstream HDMI repeater reported via EDID that it could accept 7.1 LPCM audio, would the pre/pro send it, or only ever 2ch.

The Oppo BD players do this out their secondary HDMI outputs, so it is certainly feasible.