Where to start...where to start?

This whole post is nonsense...gibberish.
The difference between Dolby and Direct are like apples and eggplants. Dolby and DTS are formats encoded on the disc and selected in the disc menu. Direct/downmix is a user setting in the player setup menu that, accounting for variations in manufacturer's terminology, seems to select the encoding method. Since you see True-HD and DTSHD-MA on you panel display, direct is the setting to choose bitstream encoding. If you were sending PCM, the receiver would not show the format but would instead say something like multichannel, etc. The dB difference between Dolby and DTS is irrelevant to sound quality but is rather a function of the processing that each format uses.
As mentioned, your players use of the term direct is the method to select bitstream. The comment that only certain tracks have direct is nonsense. All media in all formats played by the player when it is set in direct will be sent to the receiver as a bitstream signal and all media should sound the same even if you downmix that to a PCM signal, although there are some questions and opinions surrounding that.
BluRays may be more dynamic if you are using an HD format. However, if you are playing a standard DVD or non-HD format, it should sound identical to a standard player. It is reading and sending the exact same digital information off the disc to the receiver.
Where the comparison is made to sound quality of formats, just ignore this completely. It's like a discussion of preference between petunias and kumquats for use as a hammer...did I say nonsense... First, choose bitstream or PCM, as you have in your player menu. The difference here is where the decoding will take place. In bitstream, the raw data will be sent to the receiver and the receiver will decode it. In PCM, the player will decode it and send the decoded signal to the receiver. Usually, this choice is to allow receivers that do not decode certain formats to be able to play the signal without actually doing the coding. Really, it should have no effect on sound quality. Then you can choose a format in the disc menu, TrueHD and DTSHD-MA being the best, DTS and Dolby Digital being next and anything else simply inferior. Neo6, EX, stereo, mono and a number of other choices are sound field selections in the receiver and are not formats at all. They are there to allow you to alter any programming to your preferred type of sound.
Toslink will send all formats up to and including Dolby Digital and DTS but it will not transfer HD formats. The suggestion that "toslink only does up to Neo6" is also nonsense, since Neo6 is sound field processing done in the receiver and is not selected at the source and is not sent anywhere, toslink or otherwise. The PS3 will not bitstream. It will only send PCM so everything you get from a PS3 is PCM. Don't bother looking for media with "7.1 LPCM handling". It doesn't exist. LPCM is not a function of the media you select. It is a choice of processing in your setup menu that applies to all media regardless of format.
Did I get everything??????????