Correct, but not sure I would need to change the output everytime. May be a good experiment, as I would just use an optical digital cable from the tv to the receiver. Everything else is HDMI from the player (DVR box and PS3) to the surround sound receiver and then HDMI to the TV.
This just reminded me why I wanted another optical cable...lol My TV net apps n menu suck so bad its not worth it for me right now. Off the top of my head...it should be a way to map the optical output to one of your functions on your receiver. Like on my receiver I could map it to Aux, VCR, CD, etc. I may have to play around with this today.