If we could do software Dolby and DTS decoding in say VLC, we wouldn't need this overpriced under-performing gear. Decode into a digital stream and shoot it to an 8 channel pro interface and onto amps. Great performance for relatively peanuts. An example of why MQA is a bad idea for stereo.
You can already do that for almost all encoders right now but ...
It is not as simple as it sounds depending on use case. Most music sources do not need decoders (except DSD, multi-channel formats, etc). Music players already handle this to convert to PCM, although some people swear that handling DSD near the DAC is better.
There are decoders available for almost every format in HT. Kodi or VLC with embedded decoders or MPC-BE with LAV decoders can decode to multi-channel lossless PCM into HDMI or USB. But then it depends on what you are going to do with it.
Some formats (these are not encoders but metadata enhanced formats like Atmos) cannot be reproduced via PCM channels, so you will lose those. You don’t want a DAC inside the PC to process those, they usually do much worse than external DACs.
Things get even more complicated when DRM is involved in what you can do even if you could decode.
And this is not even considering the convenience features like switching sources, ARC/CEC, unified remote operations, power triggers, etc.
So typically people who can use these systems (and effectively) have much simpler use cases (in content or sources or DRM) than the requirements for the AVR market and they can convince themselves nobody needs any of the above! They are not even close to being representative of the primary market for AVRs and so these are not equivalent replacements for AVRs.
The software vs hardware decoding part of the format is not the problem with AVRs here. Otherwise, you can just do that on a PC right now and feed multi-channel PCM into an AVR or an integrated multi-channel amp. This is what many of the Kodi/MPC users do right now but with the above limitations.