Hi jkarhan1,
You are referring to digital standards; the HT bypass was designed ostensibly for audio, however.
It works this way. When the HT Bypass is selected on the remote, whichever source is selected - and one of the sources can of course be HT processor - is passed directly to the output. The output of the GK-1 is connected, of course, to the power amplifier, an analog component. The GK-1 is NOT turned off, so this is actually an excellent way to do a component AB test.
The earth of the source is switched as well as the signal 'hot'. The earth of the GK-1 is left floating, so that with this regime the source earth, GK-1 earth and power amplifier earth are all connected. The earths of the other (non-selected) sources are not connected to this system (viz, they float), and this applies both to the manual switched version as well as the relay, remote version. For any inputs not used, shorting RCA plugs are supplied to banish all traces of hum. This system is also used by Mark Levinson on his Red Rose gear.
The sub-out does not incorporate a filter. It is configured so that the sub-out signal is taken from the wiper of the gain pot, just after the gain block and immediately before it enters the tube. The purpose of this is to process the sub-out before its bass is softened by the tube, an issue with tube equipment. Tube bypass for very low bass is a GOOD idea.
My suggestion is a third order (18dB/octave) filter. It could be discrete or IC-based, either is just fine. I may supply something optional for just this purpose in the future. It will be discrete, and single ended.
Hope this helps,
Cheers,
Hugh