For those interested in a follow up, Alan talks about the subject here:
www.axiomaudio.com/boards/showflat.php?Cat=&Board=tech&Number=33196&page=40&view=collapsed&sb=5&o=0&fpart=
and Alan has another comment on the second page. A couple of things I noticed. "That's all well and good if you start with a digital signal from a CD player or DVD player, but if you plug in an analog source, the audio signal goes through the A/D conversion. And in the final output stage, the digital signal is converted to an analog form, which must occur because current speakers only handle analog input signals."
Alan also mentions digital receivers generating as much heat as conventional receivers, that is also mentioned in a review on the HK 1005 here:
www.hometheatermag.com/receivers/405hk/ 
