On my RX-V663 it doesn't light up the format indicators when the source is bitstreaming. My BD player gives me the option to set HDMI Audio to PCM or Auto, and for Coax and Optical I can choose Dolby Digital and DTS or PCM, which is bitstreaming. If I choose PCM, the BD player does the decoding and the Reciever just sees it like any other multichannel PCM source and doesn't display the format indicators. Also, it's Pure Direct mode that bypasses all of the eq and bass management. "Straight" just means no DSP mode and no matrixed surround, which is optimal here. It would be odd for Yamaha to have changed this behavior since on the same level in their lineup.
So for example if I'm listening to a 2 channel digital source like my squeezebox, there is no difference between setting the program to Straight or 2ch Stereo, but if I select Pure Direct the eq goes away and the subwoofer goes away and the front speakers are run full-range. If I select Surround Decode it will matrix surround and display the Dolby PL symbol.
Also, your TV source may be in 2-channel only, in which case the reciever will only play 2 channels when set to Straight. As a general rule only HD channels are in 5.1, and not all of them are either. When set to Straight, my reciever will display the Dolby Pro Logic symbol when I am watching a HD surround channel (Dish Network VIP722k is the source) and just PCM when watching a standard definition broadcast in stereo. Depending on how your Dish or Cable tuner handles audio and how you have it connected, you may only be able to bistream, which would mean the reciever will always just display PCM when watching TV, but it will still display the channels present in the signal on the display. Either way, you should look through the settings of your source for TV audio and make sure it's set to send multichannel audio out. Some are configured for stereo only by default. If you are watching a stereo broadcast and want it in surround, that's where you can pick one of the formats suggested above for matrix surround like DTS:Neo6. You can program one of the scenes for this so it's easy to switch back and forth. I'm guessing your original concern came because you were listening to a stereo broadcast and your system was accordingly playing 2 channels.
For BD movies I'd set it to Straight and then put a BD into your source and fiddle with settings there until the reciever recognizes it appropriately. Note that just because it's a BD doesn't mean you'll get DTS-MA or Dolby TrueHD as soon as the menu loads. Often the menus are only in stereo, and sometimes the previews as well. Or the Previews will be standard DTS too, with the DTS-MA or TrueHD logos only displaying once the BD movie has actually begun. That's what happens when you set the reciever to Straight. It will display different things depending on the source.
Hope that's helpful!
