I use eARC. It's the best audio you'll get from your TV. It's audio only and should have no effect on video. Both ends of the connection need to be eARC.
TV audio into DAC via eARC or better
My HiFi system is also in my main living room which has my largest TV for movies. Currently running optical audio out of my Sony TV into my Schiit Yggy. It's ok but something is missing for sure. Xfinity 4K box is HDMI only. Apple TV is HDMI only. I would think the highest possibly resolution would involve eARC.
I noticed the Lumin P1 has an eARC HDMI port. Looks like it can also switch video sources but my preference is to keep video quality going straight to the TV.
I know my compressed version of Batman on Netflix from my Xfinity box isn't going to be great but I need something better!
Thoughts? Thank you!