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To be able to play DTS audio tracks I switched my X800M2 to PCM.
That works great for DTS.
But as I was worrying about it needs me to often to switch between PCM and Bitstream, because you cannot do it on the fly, you need to go to setup, I tried out for Atmos soundtrack as well.
The X800M2 info shows me Dolby True HD and PCM 7.1 output. So not sure what is happening with the Atmos information. Dione is detecting LPCM properly.
Despite that I got the impression the overall surround result is better then letting the Dione decode.
I will not state it as a fact, just as an impression. Maybe you just like to try out.
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I have no experience with the Dione or with Sony's X800M2 so I went digging through Devialet's and Sony's websites.
According to the FAQ on Devialet's Dione page: "Devialet Dione is not natively compatible with DTS: X content. Nevertheless, you will be able to fully enjoy DTS multichannel audio through SPACE listening modes with DTS:X to PCM conversion."
According to the specs for the X800M2 on Sony's website it can only output 7.1 channel PCM from both Dolby Atmos and DTS:x bitstream soundtracks. In other words, if you want to get the height channel info from Dolby or DTS soundtracks you have to output the bitstream from your X800M2 to a DTS:X and Dolby Atmos capable device. That's pretty standard for a disc player, I think most disc players do not provide PCM output for the .2 channels, they assume that if you want that output you're going to be using an AV receiver or processor which can do that job for you.
What the above info seems to suggest is that you are not going to be able to get the .2 height channel output from DTS:X soundtracks with your x800M2 combination because it can only output that info as part of a DTS:X bitstream which the Dione cannot decode. The Dione is going to extract the 5.1 channel info from the DTS:X bitstream via a SPACE listening mode and give you that, which is exactly what you will get if you output PCM from the X800M2
I assume the Dione is Dolby Atmos capable since it can deliver 5.1.2 surround sound. That means you can send a Dolby Atmos bitstream to the Dione and get the height channels. If you output the Atmos soundtrack from the X800M2 as PCM you will lose the height channel info because the X800M2 can only output full 7.1.2 Dolby Atmos as a bitstream. If it decodes the bitstream it can only output 7.1 PCM. That's why it gives you shows the info for Dolby TrueHD and PCM 7.1, Dplby True HD is the core data part of an Atmos bitstream and only contains the information for PCM 7.1.
If the Dione can use a SPACE listening mode to decode a DTS:X bitstream into surround sound without the height channels than the simplest solution for you is to set the X800M2 to output both DTS and Dolby soundtracks in bitstream format. The Dione will then give you 5.1 channel sound for the DTS soundtracks which is all you can get letting the X800M2 do the DTS decoding, and it will give you Dolby Atmos 5.1.2 from the Dolby soundtracks. There is no other way to get the .2 Atmos channels from the X800M2.
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Update: I did some further test with "Dune". Seems not to be that simple black or white.
If the Dione decodes all seems to be more crisp, but more in the direction of harsh. More bass, maybe a bit too much. The loud parts overlay the more difficile parts.
That's seems the reason for my impression the surround presentation sounds better. The thing that is better are the voices.
PCM sounds somehow more harmonious. But you will loose the Atmos information. But for that I do not have noticed any massive difference in sound.
So at least an option to tweak the sound of Dione to your taste. As long as Devialet itself will not more options.
I hope they will offer the same as for the Phantom.