Remember when DD and DTS first came out and last generation DPL receivers all had the 5.1 analog inputs for the "new" DVD players with the 5.1 analog outputs during the interim stages? That's what this is today, only with HD audio and, in time, all AVR's may have it built in (like DD/DTS decoders today), assuming Hi Def DVD's are here to stay.
Personally, I think it would be really cool to pass both HD video and audio visa one HDMI cable and send the video out to the TV from the receiver. A true "straight line" connection scheme.