(nods)
Yes, the DEQ2496 certainly looks interesting - and, as you say, goes a bit beyond conventional parametric EQ by (for example) allowing different filter slopes above and below the centre frequency, and allowing the filter gain to be dependent on the signal intensity as well as frequency.
What I think is really neat about it (not having actually played with one as yet) is that it can do all of its magic purely in the digital domain. So you can take the digital audio feed from (say) a DVD player or CD transport, feed it into the DEQ2496, and use it as a combination of an EQ device and an outboard stereo DAC; but you can also output the modified signal in digital form, and send it on to your choice of DAC/processor without any spurious D/A or A/D conversion along the way.
Of course its digital capabilities are only useful for PCM streams, not DD or DTS, but it's a start.