1 - DD and DTS are competing formats and DTS has the edge on possible fidelity, by nature of higher sampling rates - should the engineer choose to use them. they are both compressed digital signals, but DTS's compression algorithm doesn't lose as much as the signal as DD. what it really comes down to, though, is who mixed it and how mch effort they put into it. they can both sound good when done right.
2 - you MUST use the 6-channel audio analog outputs from your dvd player if you want multichannel dvd-a. the digital connection will only pass standard PCM, DD, or DTS signal - not dvd-a. why? because of copy-protection issues. they won't allow the signat to be transfrered digitally for fear of somebody making perfect digital copies.
3 - yep, it's pulse code modulation. good 'ole PCM, like we use on CD's (and dvd-a)
4 - what you're referring to is specifically meant for 24/96 audio discs. some receivers can not handle the higher bitrate and don't know what to do with it, that is why they give you the option of downcoverting which would, yes, degrade the signal.. your denon has no such limitation, so don't worry about the downcoversion.
5 - i think AFDM stands for American Franco-Demolition-Marauders. this is the coalition of people in the government who have a secret network of citizens who are trying to make all American citizens hate all things French. if you are a REAL american, you will send me all of your french goods (wines, cheeses, uber-expensive audio equipment) for proper disposal and/or storage.
i'm not too sure about that last one, though.