Hi tzr916,
Yes I believe you are correct. I think that Dolby Digital, Dolby Digital Plus, Dolby TrueHD, DTS, DTS-HD and DSD will all be bitstreamed, and then things like pure stereo TV broadcasts or music tracks will be up-sampled to 5.1, 7.1 etc. I could well be wrong in my understanding there though.
I hadn't thought about separate zones for video and music - could you tell me how to go about that and is it possible for MC to automatically select the correct zone based on the source content?