DMC,
That's a really good question. The 950's bass management will probably perform as expected if running Avia through the digital outs of the DVD player. If you decide to use the decoder in the DVD player and use the 6 Ch direct, then I would think that the DVD player will use whatever bass management _it_ has and the 950 will act according to where the analog bass management switch is. If your DVD player ends up sending something over 120 hz to the sub channel on the 6 ch direct, that material will be filtered out by the LPF (yes, low pass filter). If the DVD player sends all 120 hz signal to the other speakers, the 950 will pass those on through as you would expect.
I haven't done this yet because I can't get my family out of the house long enough to do these tests. I know the 120 hz LPF works because my Kenwood 409 didn't have one and I was getting a lot of high frequency stuff in the sub. I'm not getting it anymore with the 950. There are quite a few DVD-As that are not mixed as 5.1, rather they are 6.0 and some are even 5.0 and 4.0. As Gonk indicated above, the LPF works to filter out frquencies the subwoofer was never intended to handle.