Yes and a good analogue of using Handbrake would be like taking an audio file in AAC 320Kbps (very close sounding to the original) file and compressing it agin and down to MP3 96Kbps (audible artifacts added).
Just a little DTS-MA (and TrueHD) info. Both are totally lossless compression (like ALAC, FLAC or a Zip file) and are 100% bit for bit identical (not just "very close") to the LPCM master after decoding. Some BD's do contain LPCM tracks instead (or too) but they are almost always identical copies of the master (not down-sampled and/or bit lowered).
The advantage of DTS "HD" variants and True HD is the ability to provide normalization while LPCM does not. Also of course size of stream/file. As for lossless compression - yep but the truth is that while being as you say bit perfect, the original being used may not be the master but a reworked master and that too can be a good or bad thing.