Hi-Rez downgraded by DSP anxiety

My head is reeling trying to figure out the whole surround business. Question of the Day: Most a/v receivers have DSP circuity. Telarc.com says beware of DSP because it converts hi-rez back to 16-bit. They are not clear whether simply leaving DSP off avoids this problem. Does it?
Most receivers and pre/pros leave HiRes music analog. Those that convert it to digital normally do so in an attempt to apply some type of bass management. You can usually choose whether or not this conversion occurs - the procedure varies by unit.

What type of processor do you have?

I think I've decided to go with the Arcam AVR 200, as it keeps the hi-rez analog signal intact, and the bass management will allow me to send all the bass to the L/R mains, which will be plugged into my 2-channel amp, where my speakers and sub can pick it up. I *do* wonder: I know movies have specific bass material on the .1 track (LFE), but what about Classical SACDs? Anyone have the Arcam? Anyone know about .1 on SACD?