popej
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Direct mode makes a plain old amp from an AVR. It is really doubtful that there is any sonic difference between that kind of amps. In other words, rigorous blind testing is needed to claim differences.However, when listening to music in Pure Direct/Pure Audio mode, the Denon is a fairly significant downgrade compared to the Onkyo.
IMHO you cripple the AVR using direct mode. Turn on Audyssey to get better stereo.