I dont think it really matters in the whole scheme of things. Think about it-
your hd-dvd player decodes then sends to receiver then to speakers.
or
your hd-dvd player sends to receiver, recevier decodes, then sent to speakers.
what is the advantage of one over the other? I say absolutely none. So things get decoded at the player and sent 3 feet away via hdmi... I would bet money there is no audible difference in sound quality