I agree with this. I use ARC in my living room since I don't have need for anything more advanced and this room only gets occasional use. That said, I use an AppleTV 4K in my main system and it works very well.
I've been able to pass 5.1 through ARC on my E7 OLED. You just have to configure your TV to output all audio that way.
I've never seen the wifi issue you've described before. Have you upgraded the firmware and contacted LG support?