Very few TVs can decode DTS. If connected to a receiver, use bitstream. Otherwise, use PCM.
If you are using HDMI to connect a player to a TV, those settings don't matter because the handshake between the player and the set will negotiate the correct settings. If the TV cannot handle DTS, for example, the HDMI handshake will override the bitstream setting so that the player does the decoding and sends a properly downmixed stereo PCM signal.
Also, dynamic range and PCM down sampling only come into play when the output is PCM. If you are set to bitstream, those adjustments would have to be handled by a receiver doing the decoding.