Ok, back on point...
Been away from the AVS Audio Section for awhile and was shocked to see my Denon Audyssey implementation suspicions confirmed! I actually had an early 1909 from J&R last year and sent in back to them for the very same reason and a slightly noticable degradation of the HDMI Video PQ. Also, I seem to remember the Channel Trims were set pretty high too compared to my 988 and 889 (more on that in a moment). I'm glad to see that through the hard work of Dr. Pepper and others here, this anamoly has been sorted out. Good job gang!!
Now, with respect to my 889, here are my unit's numbers:
Main Ver: 00.72
Sub Ver: 00.25
DSP1 Ver: 45.37
A PLD: A2990009
V PLD: A2940002
Since I have an early FW Version, I intend to send my unit in for the "fix." No need to confirm through subjective audio testing; if it's an early FW, gimme the latest one. However, while my 889 performed better than the 1909 with Audy engaged (including Dyn EQ), I still knew something was amiss but I couldn't quite put my finger on it. That is to say that the sound quality was slightly clearer, but the bass (SW) and two front speakers (or so it appeared) often drowned out the Center Channel even when I increased the channel trim. Hmmm... Now since I had an Onkyo 605, 606 and Denon 988, I did some comparing. I compared the Onkyo 606 and the Denon 889 with Audy Dyn EQ engaged and found that while the 889 offered better, more crisp and detailed sound quality, the surround sound on the 606 with Dyn EQ was more balanced and seamless, leading me to suspect that something was either not right with Denon's implementation, or the difference between the Absolute Values formula of the Denon (due to Dyn Volume) v. the Relative Value formula (Onkyo 606 as it did not have Dyn Vol.) relating to Reference Level output. Or, it was simply more hype than substance. Anyway, I just remember watching movies and feeling totally enveloped by the surrounds at lower volumes, while the front sound stage was seamless. By the way, even without any empirical evidence at this time, I DO believe that Tru HD and DTS MA are affected in the same manner as its lossy counterparts.
Anyway, just thought I'd share my experiences and will report back after I get the FW upgrade. There's a Denon Super Service Center in Chicago so I'll see if I can drop it off and have it upgraded while I wait.
Oh, I'll have a 3808CI in the near future so stay tuned for a comparo after the Holidays...