I'd like to hear a valid technical reason why bitstreaming is supposed to be better than decoding to LPCM. Since Kodi can decode all known HBR audio formats and send LPCM 7.1 over HDMI I don't see a single good reason why anyone should bother with passthrough.
Kodi (and every other consumer software audio player) cannot decode Dolby Atmos to more than 7.1 and cannot place Atmos objects in their mixed locations in 3D space. This is also true for DTS:X. The only way to decode Atmos and DTS:X correctly is via HDMI pass-through to an AVR or AV Processor with an Atmos or DTS:X decoder onboard.