What we are really discussing is NOT using a surround processor but rather a high-end blu-ray player and a multi-channel analog pre-amp. I have been making the points you make for years. However, in the end, most still seem to want a surround processor

. If you want a surround processor, I believe the CBIII upgrade will be one of the best. If you want the best sound, a stand alone player and multi-channel analog pre-amp will win, be that the Audio Research MAP, EMM Labs Switchman or Theta Six Shooter. I certainly plan to try the new digital out card even if it is limited to 44/16. This may be a good compromise if you need post-processing and the cross-over options. Granted it may not sound as good as your approach but even at the lower resolution it may still sound better than any surround processor.
Are you using a sub in your set-up?
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