A more knowledgable friend pointed out
RE the Nvidia Shield output: The bitrate thing only applies to PCM audio, not bitstream. Bitstream will do 24bit DTS-HD Truehd just fine. it just sends the encoded stream to the AVR. But if you're sending PCM to the AVR, it will only do 16bit apparently. So all of your high bitrate movies are fine....unless the ripper took the 24bit/48khz DTS-HD track and saved it as 24bit/48kz FLAC on the MKV file
A lot of old stuff was sometimes saved like that because people had very old AVRs when Bluray first came out, and couldn't decode DTS-HD inside the AVR, so you could only send PCM to get uncompressed audio. But if the bluray didn't have a PCM track you were screwed, because the software player would not decode DTS-HD either! (fortunately MediaPlayerClassic now decodes both truehd and dts-hd in open source free software, yay!) So anyway, some old rips would convert DTS-HD and TrueHD to FLAC so they could send lossless PCM to their older AVRs. When I used the 30-day trial of Dirac Live, I had to stop bitstreaming to the AVR, and decoded the TrueHD/DTSHD in my software player (MediaPlayerClassic) into PCM so that Dirac could then process the channels before spitting it out (as PCM) to the AVR. I think it ended up sounding way better than bitstream to the AVR with Audyssy XT