Wouldn't both of these situations create wierd effects? For instance, the reason a plane appears to be flying over you from back to front is that the sound starts in the backat a high level and decreases in level while the front starts at a low level and increases in level. If you put all this sound into the front speakers, it'll sound strange. Maybe DVD-A and SACD are different than home theater, though. But for home theater, I would want the processor to toss the information from the rears.