Arcam rDAC and surround sound
New to the world of refined audio and DACs, I have done some reading here and on the net and not really found an answer. I understand the benefit of a DAC for stereo sound from a digitial file (my Arcam rDAC is on the way!).
But what benefit does a DAC (stereo sound) provide when using gaming consoles and HD set-top boxes that are sending 5.1 sound?
From Arcam's website: "Uses for the rDAC are almost endless. Internet radio, set-top boxes and game stations can be connected via coaxial or optical leads to receive a dramatic increase in sound quality."
If I plug my Xbox 360 or watch an HD channel off cable TV into the DAC. Would it not then deliver only stereo sound? Likewise if I play a 720p or 1080p video with surround sound from my media server into the DAC, this would also be downsampled to stereo?
Would I not be better off letting my amp take care of the surround sound for video streaming, HD set-top box and Xbox to enjoy surround sound? Or is there something I am missing / misreading / misunderstanding???
Thanks for your patience with a newbie question