And now it is the only version of AppleTV that will feed DTS Surround Sound audio to my home entertainment system (I compress it with Apple Lossless in iTunes and feed it to my AppleTV). Apparently the reason why the AppleTVs 2 & 3 no longer support DTS Surround Sound audio is that they output 48KHz and not 41.1KHz as is needed.
Yes, it definitely sucks that newer Apple TV units won't pass a DTS CD signal. This is pure laziness on the part of Apple. All formats should always be output in their native form when possible, not upsampled.
I think it may be possible to convert such files, though by decoding to individual wav tracks, resampling the individual wav files to 48kHz and then repacking to DTS. This would at least allow them to play using XBMC, if not the Apple TV software in general (although I have no tried it yet to find out). At least there is only a limited amount of titles to deal with (I think I have around a dozen DTS Audio CDs).
Apple did not dump Rosetta. Their license to use the underlying software expired with new OS' commencing with Lion and IBM, the company that now owns the underlying software would not be inclined to relicense it, even if Apple wanted to...
While IBM did buy QuickTransit, all indications are that they support existing customers of the product and that it was Apple that decided to discontinue licensing the product (which was done on a per Mac basis; it does not "expire" or it would stop working on said Macs running Leopard or Snow Leopard). Clearly, this was costing Apple money per machine and that is most likely why they switched to "on demand" with Snow Leopard. I have found no evidence what-so-ever that IBM refused to continue licensing the product to Apple. If you have such proof, please show us. If not, I don't think it's a valid argument.