Why not comb the used market?
You might also consider a receiver upgrade.
That is his best bet. The time has already passed were picture quality can be downgraded to 480i at the component outs with discs with the flags that tell the player to do so
As stated the loss less codecs are now stripped from the optical and SPDIF coax outputs.
We are now at the point were HDMI connections are pretty much mandatory, because of DRM/piracy issues. Problem is the pirates can defeat it all.
Now the tossers in the studios, want to water mark the audio with notches. That will downgrade everyone's audio.
Someone needs to go down to Hollywood with a bunch of HDMI cables, wrap them round the studio bosses necks, tie knots and pull hard.
This is a really bad deal for individuals with legacy equipment and limited funds.