All good stuff, Shane, thank you. Inevitably I have a "few" requests for clarification.

How many times do I have to ask for Dolby Headphone in order for it to be classed as "most-asked-for"? 
...
These require some hardware modification outside of the pin-for-pin replaceable DSP module, and won't be available in the initial upgrade release. Once again, the capability is there on the software side within the DSP. We're looking at ways to include this in the future.
I can see how my more fanciful requests (such as a headphone jack!) would require additional hardware, but would Dolby Headphone output
alone require hardware modification? In particular, suppose I have a 5.1 (rather than 7.1) speaker/amp set-up - could a Dolby Headphone signal not be sent to the otherwise-unused surround-back channel outputs?
In some ways this would be more useful than having an actual headphone jack, as it allows 'phonephiles to use their own choice of dedicated headphone amp.
The crossover frequencies are done in groups... Front (LR) speakers... Center speaker... Surround Speakers... Back speakers. The Sub will adopt the highest of the previous settings.
That's good, but you didn't answer my question about losing the LFE channel.
As it stands, the subwoofer output is generated by mixing the LFE channel with all the signals for which the corresponding speaker is set to "Small", then applying a low-pass filter to the mix, and then forwarding what's left to the subwoofer. So, if you have a cross-over set to (say) 30Hz and you watch a 5.1 movie, then everything
above 30Hz in the LFE channel is being filtered out at 24 dB/octave.
It seems likely that, if you can have different cross-over frequencies for different speakers, then the low-pass filtering must be being done
before the "Small" channels are mixed with the LFE signal rather than after, which would solve this problem. But I just wanted to check that explicitly.
What about a "height channel"?
No plans at this time to move beyond 7.1.
I was thinking of something more like the Tag McLaren solution. Any actual piece of present-day source material will be, at most, 6.1. If you have a 7.1 speaker setup then the surround back speakers are both producing the same signal, so, in principle, you could drive both of them from the same output (this obviously assumes that you don't require different channel delays or volume settings).
So, given an actual 7.1 source (with a height channel), it's played back by sending the surround back signal to
one surround back output, and the height channel to the other. You can then either have just one surround back speaker, or use a splitter cable if you want two.
And what about the possibility of parametric EQ
This is on the roadmap, as the capability is there within the DSP. I'm not sure it will make it into the first version, but it will definitely be available as a downloadable software upgrade.
Hooray!
Will this be based on signal frequency only, or could it also depend on signal amplitude?
No chance of TacT-style time-domain correction I suppose?
We will be featuring a dsp-based synchronous upsample function with the new DSP.
But not asynchronous (as in the BP25DA)? That's a shame.
The jitter-reduction issue is a tough one for us. There are some hard issues about doing it without destroying a Dolby or DTS bitstream.
While DD and DTS streams are certainly affected by jitter, I get the distinct impression that it is more significant for PCM. This is precisely what you get from upsampling a 44.1kHz signal to 96 kHz asynchronously, of course - if the upsampling is asynchronous then, perforce, the signal is being reclocked.
Maybe you could market a stand-alone pure-digital jitter-removal device that sits in between the DVD player output and the processor input?

Or is S/PDIF so rubbish that this wouldn't actually help anyway...?
And of course the final question is: do we have any idea
when all this might be happening?