This correlates with my experience as well. I have a Yamaha DVD-C940 SACD changer connected to my 950 via optical (for DVDs), 2 CH analog, and 6 CH analog (for SACD). When listening to standard CDs, the bypass is definitely better with cleaner sound and more detail.
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Outlaw 950
5 Marantz MA-500 Mono blocks
Klipsh RF/RC 3s in front
Klipsh Synergy 8.5s in rear
Velodyne CT-150 sub
Pioneer Elite Pro-520HD 52"
Yamaha DVD-C940 changer
Lite-ON LVW-5005 DVD recorder
Samsung SIR-T451 HD Tuner
Monster Power HTS3500