My first instinct is always to blame them, but I could also see it simply not being worth Onkyo's time. It's easy to imagine wanting analog-to-HDMI for the sake of inputting something like the Surround Master, but I'm having a hard time dreaming up an everyday use for having a receiver convert multichannel to HDMI when 99% of the users will just be sending the HDMI out to a monitor.
But it's unquestionably stupid that the DRM wackos police HDMI/HDCP so fanatically when A) No matter what they dream up, someone breaks it and B) Who does illegal copying in real time?
Someone had a box that converted 5.1 to DTS, but that was years ago. Obviously if you need multichannel optical/coax you're limited to lossy formats on the output side.