No, DVD-A capability cannot be added with a firmware update. As for does it sound a lot better, well it depends on the disc, but yes it most certainly CAN sound better - that doesn't mean every disc does sound better. SACD and DVD-A are well worth the money IMO, but they are also definitely a niche product. If the disc has a DD or DTS 5.1 track, that should still sound pretty good too.