The big advantage of Toslink optical connection is that you let the receiver's DAC do the conversion. It also allows signal processing that you cannot get via 2-channel line-level inputs. For example, while most of my audio files are 2-channel, I have some 5.1 files that if I pass to my Onkyo via optical, the receiver will decode those 6 discrete channels for better sound staging. You can certainly get simulated surround from 2-channel audio (e.g. Dolby or DTS processing) but the separation isn't as good. So, my opinion is that if you have the ability to input to your receiver via optical, coaxial, USB or HDMI/DP/mDP, then that's the way to do it. But of course, there may not be any discernible difference in what you hear because there's only so much that we humans can hear.