One reason to use bit-streaming for me is that my receiver does different things (processing wise) with the audio based on what it sees coming it. I would lose that if everything was PCM. For example, right now it knows that if it sees 2 channel DD it automatically engages pro logic processing, but if it sees 2 channel PCM it engages direct stereo processing.
That was one of the reasons I resisted switching initially as well. My Denon can do DTS Neo expansion on stereo sources, and I can have separate settings for two-channel Dolby Digital. I generally preferred DTS Neo 6 to Dolby for most generic two-channel audio sources, but not for all things.
But, frankly, I've subsequently done a lot of testing, and JRSS is just as good as DTS Neo 6, and (IMHO) better than Dolby Pro Logic.
The main thing holding me back now was:
1. Lazy.
2. Figuring out how to support DTS-MA decoding through Red October.
I still need to do #2, but... I'm rebuilding my HTPC this weekend anyway (swapping motherboards), and with the trouble I've had with my Dolby Digital TV recordings, it is just time.
FYI, the trouble I had over the weekend was this:
I generally have, as you should, MC set to WASAPI Exclusive mode. However, this weekend, we had some people over, and they wanted to keep one eye on the football game. During the first game, this wasn't an issue, because everyone was watching it intently. However, for the later game, no one was watching it "full time", we just wanted it on "in the background" so they could check scores from time to time. In the meanwhile, I wanted to run MC and play some music.
Wow. This turned out to be a major pain. I made a second Zone in MC and set it up as "non-exclusive". This worked fine, but SageTV kept crapping out. The problem wasn't MC, it was SageTV. Sage was, of course, also all set up to bitstream audio, and I couldn't figure out how to disable it (
because delicious bourbon), and so when I'd launch the TV channel, it would work for a while, but then when MC would change tracks, it would freeze SageTV.
Plus, I have trouble using Web audio. If I'm watching a web video in the browser, it works fine. I get two-channel audio and my receiver applies DTS Neo 6 to it to expand it to surround. But this sounds terrible for music (way too center-focused), and I don't have the remote to the Denon accessible (it is in a closet somewhere with no batteries). Almost all of this would have been simpler to solve if I was just not using bitstreaming anywhere.
In my whiskey-induced rage, I vowed to stop using silly bitstreaming. I sobered up, of course, but still think this was probably the right call.