There is a note in the Books Overview page http://www.mpeg.org/MPEG/DVD/General/Books.html: "The DVD Audio (Book C) is expected in Summer 1996." So this specs may have been modified after the release of Book C specs and/or mch LPCM playback was left out from the DVD-video players. I'm sure Neil can clarify this.No!
Max 8 channels uncompressed 48 kHz LPCM are possible with DVD-Video. Read the specs, e.g. http://www.mpeg.org/MPEG/DVD/Book_B/Audio.html!