I use the TOSLink optical input for my TV. It works well. Main advantage: You keep the noise from your TV out of the stereo equipment due to perfect galvanic separation. However it meant that I can not hook up my CD digitally anymore. But all my CD’s are ripped an I play them via my music server (iMac) and USB. Not that my iMac is less noisy than my TV though, but I can not hear it and it allows me to listen to up to DSD128. I like it that way.
Bryston and Moon both Canadian sell high end PreAmps with DAC and 4 x HDMI ARC inputs but you have to fork out US$ 7000 or 4500 respectively for the pre amp alone. A friend of us has Moon equipment connected to his superb Mark and Levinson power amp, it sounds really good. I heard why he is so about Moon. By the way those units also stream.
The Bryston accepts DSD over HDMI input native and digitally so when you hook up your Oppo or Pioneer multiplayer the Bryston DAC does play/convert the DSD layer from SACD for you. The Pioneer does is capable of sending DSD over HDMI for amps or receivers that can process it, Bryston claim that they do.