So going FLAC with audio content from SACD, dvd audio and bluray audio is actually going slight lossy? I can live with that I suppose.
That makes it a lot easier to set up a sevrver and play back multichannel in an easy way. But playing lossless hi res in multichannel seems real tricky.
It's not. I do it frequently with nothing more than a pocket-size external drive with 2TB of storage, USB-connected to an old networked desktop computer that contains an HDMI card, runs Windows 10 and foobar2k software and select f2k plugins, and has an HDMI cable running to a modern AVR capable of playing any PCM rate up to 192/24 (as well as decoding nearly all flavors of DTS and Dolby). All my DSD rips are already converted to PCM and all files are shrunk with FLAC. Lately I've added a phone/tablet app that can remotely control foobar via Wifi. The rate-limiting step in all this is literally just *the time it takes the computer to boot up*. It's slow as hell doing that.
So, once the files are ripped to that external drive,
playing them is pretty simple. Foobar decodes FLAC to PCM (including multichannel PCM), and out it goes to the AVR. It can also decode DTS or DD to PCM, but I choose to output those as raw data, and let the AVR decode them.
Ripping the files from disc can be a chore. DVDA and DVD-V are simple, BluRay (can be) fussier, SACD fussier still.
As for lossy vs lossless, DVDA and Bluray rip /decode losslessly to PCM, and are losslessly compressed via FLAC.
As for DSD, fortunately it was *designed* with simple downconversion to PCM in mind (that's why its sample rates are multiples of 44.1, as back then CD was king) . DSD was intended as an archiving format for the labels to use; in the original scheme, consumer product would always be a simple PCM downconversion from DSD. Of course it didn't turn out that way. Labels decided to sell DSD itself as a new, and most importantly, very strongly copy-protected, 'high rez' consumer format , via SACD media. So now we have to deal with actual DSD files. You can now rip those using a tiny handful of hardware players + the right software, and play the resulting huge DSD files 'directly' if you have a DSD decoder in your playback chain (either in your software or your AVR). Or you can convert them to PCM. Which is sensible because any decent DSD-->PCM conversion is
perceptually lossless, file sizes are much smaller, and pretty much any modern AVR can play multiple flavors of PCM. Perceptually lossless, as I said, but if you are particularly anal you can always make the downconversion be to 192kHz PCM instead of 96, 88.2 or 44.1. Any of which can then be compressed in size losslessly, via FLAC.