You don't lose a lot (tho I prefer the sound of HDMI cables over optical or coaxial digital or analog when I went thru my comparisons) UNTIL you get into HD DVD or Blu-ray players that can actually output HD audio. Then you need the extra transfer capabilities of HDMI ver. 1.3 to make it work and a receiver that can decode it. All of that is in the beginning stages but is now available and does sound better. I have an HD audio capable Blu-ray player that sends lossless HD audio that my reciever downscales to 7.1 lossless and it does sound better than standard digital connects or analog PCM. Definitely in the transition phase right now so I imagine B&K may be just waiting until it all shakes out.

Have FUN!

G

PS - Musical ability is enhanced with HDMI if you ask me because more data can be transferred at MUCH faster rates and you get seemless digital conversions whereas really good analog beat digital in the past for pure musical ability IMHO.