Originally Posted by ToiletSiphon
Nothing else exists that would fill my need?
Not exactly true. The best case scenario (for now) is to incorporate a receiver into the equation. That is what I had to do. There was nowhere I could find a converter that would input digital and output digital and coax (analog rca). A receiver will do this though. So here is how I have mine "incorporated":
1. Plug all components into the receiver.
2. Output via HDMI to the TV.
3. Output audio from TV via toslink (digital) to the soundbar.
This will create the connection you need for the soundbar. To use the headphones, simply plug into the headphone jack on the receiver. This is BY FAR the simplest solution (that I can find or know of) as of this moment. Not to say that won't change in the future.
As for a receiver, I'd suggest the Marantz NR1501. It's low profile, fairly unobtrusive and can handle the different mixes of components. Otherwise, I'm a Yamaha fan all the way......