While AcuDefTechGuy has a novel approach to amplification, I'm not sure his approach to decoding and bass management in his individual source components will stand up to that performed in the receiver or prepro; typically better than the source components. IMHO
I think many people would agree that it doesn't matter whether the player or the receiver does the processing. All the differences in THD, SNR, Crosstalk, F.R. are insignificant and inaudible.
There are always 2 camps. One believes that even a cheap DACs will sound just as good as the expensive DACs. The other camp believes that the more expensive DACs perform better.
The Denon, Onkyo, & Yamaha use the Burr-Brown PCM1796 DAC on their flagship models. However, the flagship Burr-Brown DAC is the PCM1792, not the PCM1796.
The Denon DVD-5910CI Player has the flagship PCM1792. The Denon DVD-3800 BD player has the PCM1796. So which one uses the better DACs? The Source or the pre-pro/receiver?
A player that has a "better" DACs than a $7,000 Denon pre-pro-- so there goes your theory of the pre-pro having better processing than the source.
So it does not matter which one does the processing/decoding.
And the video?
Well, both the DVD-5910 & DVD-3800 have the Silicon Optix Realta. Are the video processors in any receivers or pre-pros out there better than the Realta? I don't think so.
Bass management? I use Source Direct which bypasses ALL bass management and set every speaker to full range 20Hz-20kHz.
No bass management, no tones, no EQs, no DSPs -- just pure discrete 5.1 decodings for DD, DTS, TrueHD, DTS-MA, SACD, DVD-A, and 2.0 CD.
With that said, there is always a right system for someone.
This system is ideal for those who DESIRE to have a dedicated analog stereo preamp for that 2.0 CD listening, but don't want 2 separate systems.
What I'm using is basically an Analog 5.1 Audio Preamplifier/Amplifier system.
It's not for everyone.