You absolutely need internal decoding of all audio formats - without analogue audio outputs - because:
1) Any time there are two or more audio streams happening (ie. movie sound track + PIP commentary + button sounds) all of that needs to be decoded inside the player and mixed into a single audio stream output. Bitstream output of HD-Audio only allows you to hear the movie soundtrack. Any secondary audio streams are lost with bitstream output. IMO, bitstream output should not even be an option except for "higher end" players aimed at people who know and understand all of this stuff. For the mass market, low cost players, it all needs to be done inside the player so that there aren't any issues with secondary audio mixing.
2) There are many HDMI receivers that do not have their own HD-Audio decoders. They may be able to handle multi-channel PCM, but they cannot decode DD+, TrueHD or DTS-HD. For those types of receivers, again, the audio must be decoded inside the player.
So if you're thinking the only use for internal decoding is with analogue audio outputs, that really is not the case.
As to my opinion of the average electronics consumer: yes, my opinion is definitely very cynical (perhaps you could call it warped)

I deal with the public all day, every day and so far as I can tell, they are all blithering idiots
Naw...in all seriousness - I know that there are some people capable of understanding reason and explanations, but there really are a heck of a lot who cannot process more than "yes" or "no". At least not right away. You can really see them get tense, their eyes widen and their blood pressure go up if you answer them "that depends". People really do like "yes or no" black or white type answers. It makes them feel comfortable and reassured. They will ask the same question 5 times in a row and all they really want is to hear "yes" or "no" five times in a row. Change your answer and they will think you are lying. That's why they asked 5 times, because so often, if they just keep asking, they'll eventually get a different answer. That all comes from the fact that most people ANSWERING questions have no clue themselves!
Basically, people are dumb. They lie. Everyone else knows this too, so no one trusts anything that anyone says. It's kind of sad. But that's what happens when there are no longer any consequences for bad behavior and doing things wrong.