My experience is the same as Tim's. I bought a 600 series Yamaha receiver for my dad for Christmas a couple years ago, & I can't remember which specific model number, might have been the same as Tim's, but it worked correctly in straight mode. Sometimes it would detect the decoding mode it needed to be in and displayed it correctly, but sometimes it wouldn't. Hitting the straight mode was essentially manually telling the receiver to go into the mode that we would want it to go into anyhow if it did it properly automatically, which would be playing whatever the encoding is on the disc, the way it is on the disc whether it be stereo, DTS, DD, DTS-MA, etc... but straight mode didn't turn off any of the processing settings that I set up. The pure direct mode did though, so I told dad to avoid pure direct. Like I said before though, it's been a while, so I went to the manuals to refresh my memory, but the manuals (both for the RX-V667 or the fancier R7 that zumbo has for that matter) are consistent with this in that straight shouldn't turn off any adjustments like your bass management.
The RX-V667 manual page 44 says Pure Direct will turn off the following:
"The following features are disabled in Pure Direct mode. • sound program, tone control, YPAO PEQ, and Adaptive DRC • displaying and operating the OPTION menu and Setup menu"
That V667 manual does stink. When I read it last weekend, I didn't like it, and when I just looked at it again, still don't like it!

If the AVR decodes the audio from the disc properly and does so automatically, great, but if it needs to be told to decode things the way they are on the disc, I used straight mode back in the day, which was a Tuesday... I might be wrong since I don't have a RX-V667 in front of me to try, but this is what worked on the only 600 series I ever messed with. Good luck.