It's problematic. You can't even get 6-channel lossless PCM using S/PDIF - you have to use lossy compression (e.g. Dolby Digital a.k.a AC3). Technically that works, but ugh. I mean, come on, it's 2022, why should I settle for a transport medium from the 90's that requires lossy compression over 1 meter of cable?
To add insult to injury, if the content is not already encoded in one of these lossy formats (e.g. video games always work in PCM), the source has to lossy-encode it on-the-fly (assuming that's even supported). Again, yikes!