My simple answer: Direct, (no EQ), for louder volume. EQ to preference with softer volume.
I find at higher volume, Direct provides more clear & detailed sound. No part is exaggerated or overwhelming. It won't sound as "in your face", but you may realize it is more accurate and pleasing.
At low volumes, it seems to me that some of the detail is lost. I need to brighten it up a bit to sound good to me. That's where the various AVR capabilities come in. You'll just have to play with them to see what you like. Nobody can tell you.