HDMI vs 7.1-channel analogue outputs

HDMI is just a DVI with sound, HDMI supports encryption for the lawyers and simplicity for newbies. The sunset rule from 2011 stated high definition video content could not be transported over analog connections, it was for copy right protection and nothing to do with performance. I personally prefer the digital conversion to be done at the source.

Yes, analog's square wave is much easier to pass thru a metal based signal cable than small packets of digital bits. Might I suggest taking a look at a article entitled "A Deep Dive into HDMI Audio" on Audio Science Review website for a little more clarity on the matter than I can provide.