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My installation work of Yamaha RX-V663 today proved that. One bad thing is that my TV (Vizio 47") is not good enough. It doesn't have sound after connection through HDMI. Intial study made me suspect that the TV doesn't support HDCP on HDMI. Also, after connection, I feel TV's sound system became a waste
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You aren't being crystal clear on what you are complaining about here. TVs with HDMI always support HDCP. There are some DVI monitors/projectors that don't have HDCP and there would be some error message displayed, but that's not your problem here.
The TV speakers when you have a home theater system aren't used, and yes whatever TV sound system is wasted, but what's the problem? Your receiver + speakers should sound much better than the TV sound; the TV sound is for people without home theater systems.
Are you complaining that the Yamaha doesn't relay the HDMI audio to the TV, only outputs through the speakers? That really shouldn't be an issue, you don't want sound out of the TV.
You should be connecting HDMI from sources to receiver, and receiver HDMI monitor output to the TV. Shouldn't need any optical with the equipment listed. (Exception is if you are using the TV's built-in tuner for OTA or cable TV reception, then you need optical from TV to receiver).