AVR: Internal 2 CHANNEL AUDIO MODE. OR: HT BYPASS (external equipment for 2 CH Sources)

1. AVR, every one I had includes an AUDIO MODE for 2 CHANNEL which sends ALL signals ONLY to L & R Amps/Speakers. True 2 Channel sources, OR, ’unencode’ or ’down-mix’ surround to 2 Channels (often sounds better). Critically, surround center signal goes equally to L/R. Poorly done surround or cable created pseudo surround is ’put back together’.

or

2. HT BYPASS: separate L/R inputs direct to AVR’s L/R Amps (at full gain). You send volume controlled L/R signals (devices with their own volume control or via a preamp). (I’ve never had one, nor anyone I know).

https://hometheateracademy.com/home-theater-bypass/

In both cases, the AVR L/R amps only are driving the L/R Speakers, thus the amp’s sonic signature is the same. Using ’better’ equipment to feed the same amp?
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Why HT Bypass? Shortage of Inputs?

Blu-Ray players play CD, SACD so that’s already covered.

Aside from everything else, you need 2 remotes if you use HT Bypass (to control 2 Channel Volume).

Pure Signal? Many AVR’s offer ’PURE’ or ’DIRECT’. Many preamps offer tone bypass, i.e. Pure, Direct. Thus the preamp is simply a source selector and volume attenuator.

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IF I wanted ’better’ 2 channel equipment, I certainly would want ’better’ L/R amp(s) (most probably Tubes) so the AVR will be off and a method to get to the L/R speakers is needed.
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And, let’s not forget, the need for VIDEO (creating and maintaining L/C/R Imaging over WIDE multi-person viewing audience) is fundamentally different than AUDIO (refined/precise 2 Channel Imaging for a single listener).

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My contention: a specific speaker solution for WIDE L/C/R imaging for Home Theater, and try/use the AVR’s 2 Channel MODE for 2 channel source and force 2 channel to see if a surround source might sound better (often does). Simple Mode button, same volume, single remote.

2 Channel Music: a separate speaker type, thus a separate system.

I’ve always had a dedicated PC (even prior to HDMI) as an optional source for my HT, that’s my streamer and full net access, You Tube, Netflix, Prime etc. is on Smart TV’s now, but not in the old days. Even then, PC the source, I often find trying the AVR’s 2 Channel Mode sounds better. Audio and Video on the motherboard, no fan noise of dedicated video card.