Isn't the problem with HDMI (the protocol not the connector) that 99% of multichannel content – i.e. movie soundtracks – is encrypted and DRM'ed so any device that wants to use the protocol needs expensive certification and sign NDA's promising not to perform certain kinds of processing? So if any potential new protocol/connector were to allow a 'cottage industry of small manufacturers creating specialized boxes that can be placed in the digital chain' then the current rights holders and certification bodies (i.e. film industry mafia) would not use it anyway. Which brings us back to square one ...
This seems to me to be a political problem rather than a technical one.
This is a great point but the film industry mafia does not need to use anything. They have control on reproduction only when it is played back via licensed HDMI which requires agreement to not provide it as digital multi-channel to non-HDCP devices. There are a number of legal ways around this if you do not use HDMI.
In the current situation, the content industry mafia joined hands with Intel who owns the patent, the big box industry mafia (Sony, D&M, Yamaha, etc), the latter seeing this is as a way to keep smaller competitors out.
It is a self-inflicted wound on the rest of the audio industry that let the above mafias control the standard that has stunted the growth of multi-channel use in music or video with or without DRM.
There is no DRM issue in legal purchasers of content music or video to make backups of their media and play it through whatever players they want. This is a fairly common use with CDs, DVDs and Blu-Rays with the availability of cheap storage using NAS. This is why there is a Dirac multi-channel for PCs, for example. But it's actual use is hobbled for two reasons.
Unfortunately, use of an audio chain in this playback requires equipment that can output multi-channel audio and the only meaningful option right now is HDMI which (1) requires a HDMI licensed product with the restrictions and (2) keeps smaller shops from providing specialized boxes because of licensing costs. Currently, people on PCs/macs use USB or even optical ports for 5.1 bitstreaming from players. But there isn't much cottage industry in the processing in the chain. A universal connector would solve both problems.
A lot of people prefer multi-channel music (either recorded in multi-channel or synthesized surround). The content production as well consumption of these is limited by the choices available for the audio chain. Going the HDMI route for this is expensive and unnecessary, so again this is fragmented over multiple connector types.
In addition, the pro audio industry with some overlap in consumer/pro-consumer space uses multi-channel audio quite extensively.
The kind of cottage industries a universal connector would enable are the smaller shops that can provide great in-line processing (Auro-like boxes, room eq boxes, flexible zone distributions, integration with home automation, etc). Think of it as blowing up the all-in-one AVRs that provide mediocre collection of things or are very expensive into separate functions done better by individual shops specializing in it. This is exactly what the big box audio industry is afraid of and so they want to protect their all-in-one oligopoly and enabling the content industry mafia.
The rest of the audio industry just wring their hands at the HDMI mafia but do very little about it. This is one way of doing something about it.