Yes and no. Dolby Digital will be around for a long time to come, just like Dolby Pro Logic has and still is on older programs and DVDs. The new formats are pretty much only included on HD DVDs an BlueRay. When will these become dominant like DD? Who can say but it is probably safe to say the time line will probably be similar to the transformation from DPL to DD.

This is why, in the long run, a preamp that is separate from the amplifiers is a good investment long term. I have not thoroughly researched which preamps now support the HD formats but you may be able to find a few but your selection will be limited until HD audio gains more ground.

Your equipment failure could not have been less timely as this transition period is just now becoming problematic. Some mfgs may be able to provide a modular upgrade solution but this is the exception, rather than the rule. I do not remember who makes this last pathway possible but I do remember reading something about it a few months ago.

I will do some digging if this last option interests you.

New HD Audio formats