It’s not a downgrade for home theater since you get Auro3D, and more speakers probably makes for a more immersive experience, especially when the difference in SINAD may be below the threshold for most. I think even
@amirm has said that Denon/Marantz remain a strong choice for installers due to the very reliable HDMI CEC feature set.
BUT, for two channel performance where maximum transparency is desired, the X4700H does worse than the X3600H which does worse than a lower-priced 2 ch USB DAC. For two channel performance, the X4700H does much worse with HDMI input versus Coaxial SPDIF.
I think this is where consumer focused companies get separated from profits focused companies. They don’t even need to be exclusionary. Chevron makes a lot of profits and they clearly are not a consumer focused company. However, when talking about Techron additives, they are very transparent in saying that Techron is already added to their gasoline, so no additional additive is needed. They are part of the Top Tier fuel consortium, which ended up getting support from the automotive manufacturers.
Going back to Denon, now that Sound United is playing in the ultra high end space with Classe and Bowers and Wilkins soon, I really hope they take on an evolved stance.
A truthful but PR based answer could sound like :
“All of our gear exceeds the advertised specifications, which we believe to be the threshold of audibility for most customers. Nevertheless, we encourage customers to speak with their retailer to understand the differences between our product line. We acknowledge that the x4700H has worse measured 2 channel performance from the x3600H due to the new 8K support and the added processing power needed for Auro3D. This worse performance will not be audible to most individuals while the support for ALLM and Auro3D are benefits seen by most end users. We get this was a good trade off for the price point that we are
targeting. Our 2 channel products such as the Marantz PM-10 and internationally available Denon PMA-SX1 Limited remain our best 2 channel systems, when paired with their corresponding SACD/DACs. “