You are right, you can. The important thing is just to make sure the receiver indicates it is decoding the signal properly. Just be sure you aren't using PCM with optical or coaxial.
Sorry, my mind has been clouded by the HD-DVD/Bluray discussions on Dolby True HD and DTS-HR/Master Audio. In which case many need to use PCM over HDMI unless they have a reciever and player combination that supports it.