if i'm hooking up the new panny bd-50 with 7.1 analog cables to get DolbyHD or PCM, then i guess i'm using the Panny's DACs to convert the sound. Panasonic makes decent DACs?

So my question is, am i almost better off hooking up the panny with an optical cable, not getting the PCM or Dolby HD, and letting my 990 use its DACs and get the standard Dolby Digital or DTS. Which would sound better?