marqs wrote:I don't want to critize HDMI audio too much, but one limitation is that HDMI signal cannot just be easily split up (video->TV, audio->amp), especially if there's HDCP involved. I wouldn't personally want to run HDMI via any AV receiver to TV, since the signal would need to be processed in between, and the receiver could screw up many things (add latency, modify EDID/Infoframe data etc.). New TVs fortunately have started including ARC (audio return channel), which should be somewhat better solution (at least video won't be screwed up). My TV set doesn't pass multichannel audio to ARC, though (not really an issue with retro consoles, but a hinderance generally).
Typically the setup you suggest is more found in lower-end solutions like soundbars, home theatre AV receivers will typically have the video source connected to them, pull the audio off it, and then pass the HDMI over to the display, and they all support HDCP. They do typically modify the EDID to indicate what audio they support, but don't necessarily add any lag. Mine doesn't support any sort of video manipulation at all (not even an on-screen menu).
Basically, having audio over the HDMI enables a bunch of scenarios, which probably cover the vast majority of people, who are just using their TV's built-in speakers, or hooked a sound-bar up to the TV via SPDIF, or have a home theatre receiver that sits between the source and the display.
I totally understand your reluctance to include built-in support for HDMI audio due to licensing concerns, but it seems that you could safely circumvent the problem by simply providing a physical interface for an optional audio module. People who don't want it shouldn't mind the extra few cents for the cost of the pin headers, and people who do want it could have a super easy method to add audio support.
EDIT: Actually, maybe you'd need three jumpers on headers to replicate lifting those IC pins?