As I've mentioned months ago, FiiO already has a basis to work off of...
I have no idea what this device is for, but what we are asking for can definitely look similar to this. Just get rid of the whole wireless thing and work off the base alone...
http://www.fiio.com.cn/products/index.aspx?ID=100000048596648&MenuID=105026003
That transmitter does have a nice wealth of inputs and an acceptable size.
What I want to know more about is this device, seems closer to what the petition is looking for as far as functionality goes:
http://www.fiio.com.cn/products/index.aspx?ID=100000039443512&MenuID=105026003
I assume it already has a DSP to decode Dolby Digital Live and DTS Connect (and the others), just add a headphone HTRF like AstoundSurround or Dolby Headphone and a headphone amp (or, I guess recommend an existing FiiO amp to connect next in the audio chain) and we'd be golden.
Maybe a 2-piece system would be best... a DSP and DAC unit near the console to make the analogue signal with headphone surround, then a "gamer's amp" with RCA input and chat input. That way, gamers could control volume easily from the couch position, and FiiO could even sell the "gamer's amp" separately for those who prefer stereo gaming or would like to add headphone surround later. It would be super cool if the "gamer's amp" could separately control volume for game audio, chat audio, and mic input.
I don't actually understand what the D07 does, it has multi-channel input but only stereo outputs and no mention of what it does with the surround sound information. The English description is poor and not adequate to explain the D07's functionality.