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Switching off the digital input reduces the potential for electronic noise interference (whether you can hear it depends on a number of factors). As for the high sample rates, all DVD-A multi-channel, so far, max out at 96khz but many of them feature a two channel stereo mix that can be at 192khz (though not always--best to read the fine print on the disc literature).
As for your receiver, all it is doing (in most cases, don't know yours specifically) is amplifying the signal from the player to your speakers. No other processing is supposed to be happening (again, there are exceptions, my receiver allows bass management of the incoming hi-rez signal, but most do not).
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