I understand the discrete channels. I don't understand what happens when you want to use more than the discrete channels provided in the source.
Ex: I have a 7.1 system, and play a bluray that is 5.1. My rear surrounds play something. How does the AVR decide what is appropriate to send to the rears?
Ex: I have a 7.1 system, and play a bluray that is 7.1. But instead of using rear surrounds, I have those 2 channels assigned as Front Highs. How does the AVR decide what to send the FHs?
Does a 5.1 or 7.1 source contain: L/R/C, SL/SR, RSL/RSR, FWL/FWR, FHL/FHR, and select only the channels I have configured? I don't think so.

I'm guessing the AVR software uses, "tricks with phase and delays to try and figure out where things are but not well". If that's the case, are these algorithms pretty much standard and shared between all manufacturers? Does one company stand out as doing it better?