@audioguy123 - I couldn't agree with you more, and I have this exact same conversation regularly with people I'm working with. It has resulted in huge headaches for the honest people, with no impact on those intent on pirating. Sigh...
Update on my original problem - I continued to have audio dropouts when running through the HDMI splitter, so that ended up being a no-go.
I happened to have a 20' Monoprice Ultra High Speed Certified 48gbps cable laying around (same type of cable that I run 4k/120 from Envy to JVC without problem), and ran it from the Strato directly to the Arcam, and so far everything has been stable. I watched a full movie, along with an hour or more of testing, and no video or audio dropouts so far. So I'm cautiously optimistic that the problem is purely the HDMI cable, as it is with 95%+ of HDMI woes.
The irony is that the KScape supplied cable failed, while an inexpensive Monoprice cable seems to be working. Famous last words, I realize, but time will tell. I've ordered a 6' length of the same cable, as I don't need 20' coiled up on the floor!
Assuming this problem is in fact resolved, I have to say I'm really liking the KScape experience. I used the Pioneer disc reader to catalogue my favorite movies, and a high percentage of them were only $4.92, with many of my titles now upgraded to 4k.
And I've come to realize it's more than not just having to grab a disc and put it in the player, but it's not having to wait for the player to read the disc, fast forward through coming attractions or similar content, not having to confirm the audio track, in my case turning on subtitles, etc. I just hit play and the movie starts.
And being able to make my own scenes, adding them to my own scripts, is incredibly useful when I have people over to demo the theater. I was able to do this for the first time yesterday, and it worked great. Doing this with disc was incredibly tedious, cumbersome and inefficient.
So maybe KScape needs to have another look at what HDMI cable they package with their players - the right cable would have saved me many hours of grief and frustration, and made for a much more positive first experience with the KScape ecosystem.