Could someone please explain the reason that one would run their video sources (HD Cable Box, DVD) into their A/V receiver rather than straight into their TV? The audio is obvious, but why the video? Inquiring minds wish to know!
It's for video-switching. This allows you to conveniently use just one input on your TV while allowing your receiver to switch both video and audio sources simultaneously.
As Tim said, plus some newer receivers will also do video upconverting (composite-> s-video-> component) so you only have to use one set of component ins on the TV for all sources, regardless of the original source's connection type.
OK, so what is the purpose of the optical audio OUT of the TV to the receiver? Wouldn't I have already done optical out of the HD cable box and the DVD player to the receiver? Why a separate one for the TV?
If you're recieving free-over-the-air ATSC digital broadcasts, the audio is encoded as Dolby Digital AC-3. This may be anything from monaural to 5.1, but in any case you may desire to to reproduce it through your home sound system instead of the usually-awful TV speakers. The simplest way to do this is to run a digital connexion from the ATSC demultiplexer to an appropriate input on your HT reciever. You don't want to run a 6-wire analog connexion, do you? And the manufacturer doesn't want to include 6 high-grade DACs, either.
It's usually for HDMI, which carries audio as well as video. thus you can send the audio to your receiver.
Why would you do this? If you don't have a receiver capable of video switching, you can do the same thing with your TV. If you have more than one HDMI source, like say DVD and Sat box, you can change the source on the TV and the new audio will go to your receiver, and you don't have to change the source on your receiver. Ditto if you change to the built-in HD tuner.
Just like the video switching but the opposite!
Downside: HDMI will NOT carry DTS, so if you set it up this way you can't use DTS. Dealbreaker for me.