Well essentially I agree with you "if" your source material is older but most newer BR players and the ps3 are able to decode the new formats so it is not absolutely necessary - all you really need in a receiver is HDMI 1.1 repeating if you want to have the new audio codec and HDMI 1.3a switching (passthrough) in order to get deep color and that is only if your display will accept deep colour - ie 1.3a & 120hz compatible