Rob Babcock said:
The beauty of HD-DVD & BluRay is that they have the technical capability to carry the full video while also carrying DVD-A-level sound. If they ever choose to do it is another matter.
...and with HDMI1.3 they'll be even better than DVD-A supporting 96/24 lossless Dolby TrueHD and DTS-HD in 7.1 instead of just 5.1
(At least I've never seen any DVD-A titles with more than 5.1 on them)
Although like you said, when they choose to use it is another matter.
At least Sony have announced that the PS3 will not only support SACD but the 60GB version will also support HDMI1.3 while the 20GB consolse will only support component hook-ups.
We'll probably be waiting until summer 2007 before the first Dolby TreuHD and DTS-HD decoding receivers come into play though.