I would have to say, (subjective) that if FiiO was to use DH as it's 3D model going forward, their product would soon be left behind as inferior. I have used all of the above plus others over the last 25 years extensively in the FPS gaming environment via headphones, and in my opinion HD would come last every time out of the current up to date offerings and as you say "isn't my personal favorite". It is not broken, it's just not anywhere near the best and people are wanting better. That being said, I understand there are competitive licensing issues that my stop them using something else, but who knows, times are a changing.
A competitive sound environment is going to require more than DH.
You should probably be posting this on FiiO's petition page.
I think of DH and other virtual surround processing based on reprocessing 7.1 "home theater" surround as being 2D; it's a flat plane with no height cues.
I understand why you want 3D surround sound... so do I! But at this point, 3D surround must be something that developers integrated into the game when they were making it. That is beyond FiiO's control. Creative tried promoting OpenAL for a while, but essentially the gaming industry forgot about it. AMD's new integrated TrueAudio is still going to need games writing support for it, and the sound processing will probably be done on AMD parts before it is ever sent to an output.
The fact of the matter is that DH and it's 2D virtual surround peers are more universal. The console is still processing where sounds are directed, and external devices can only re-process this "home theater" designed 2D surround. More may be possible with a PC and designing an external soundcard, but it's still up to developers to integrate a 3D library of sounds into their game. Unless GenAudio is approachable by others and don't have an exclusivity contract with AMD, it would be impractical for FiiO to pursue a 3D surround setup.
That said, 2D surround is still a big competitive step up from 1D stereo, and the majority of the gamer market hasn't yet even experienced surround at this level with headphones. This fact and the more universal compatibility of 2D headphone surround is why I argue that, until the landscape changes (or FiiO grows and has the R&D to change it themselves), a 2D surround encoder is the practical direction FiiO should/could aim for today.
Third party mics don't work with the DSS (so I've been told).
The DSS itself is only "compatible" with Turtle Beach mics built into their headsets... what you do is connect the mic directly to the console's mic input. I think this is what DADDYDC650 was trying to do anyway, when he mentioned the Y-cable.
That blows! I guess I'll return the V-MODA BoomPro since I already have a mic for my PC and it doesn't work on the PS4 the way I want it to work using the TB DSS. Hopefully Astro will release a proper headset that works with the PS4 AND Xbox One. The wait sucks!
Before returning the boompro, I'd wait to hear from Mad how he has his "3rd party mic" connected to the PS4. The DSS doesn't have to be involved with the mic signal chain to get the mic working.