I don't mean that. I don't honestly know what best case is. Himedia have been made aware of the problem and are looking at what they can do.
According my opinion and my wish

of course, it should be implemented like this:
1) RAW7.1 => trying to send to a receiver 7.1 PCM
2) RAW5.1 => trying to send to a receiver 5.1 PCM (probably if source is 7.1 surround back and side should be mixed)
3) Auto => the principle of auto negotiation (if receiver supports 7.1 should send 7.1 PCM otherwise should send 5.1 PCM)
4) STEREO => should send stereo PCM
or maybe STEREO MODE should be at option "Auto" i.e. there is no auto negotiation.
But like I wrote at top of reply it is only my opinion.
Regards