That is, indeed, the case. All DSP functions, such as bass management, format decoding and processing, roomEQ, etc., are done on PCM signals and, therefore, require digital input (HDMI, DenonLink, S/PDIF, etc.) or a processor which will re-digitize an analog input. Very few will do that with a multichannel analog input (only the very expensive processors) but most will do that with (some) stereo analog inputs. In this day and age, I do not know why one would want to use analog from any digital source. Is there a reason why your brother-in-law needs to use multichannel analog connections?