TOSLINK is just an optical connector system, it's not a system for encoding. Just like "RCA" is a type of connector, and you can run whatever signal you want.
Optical audio in consumer equipment is very limited. It seems like it should be high-bandwidth because it's optical, but it falls short. For consumer audio equipment, ordinary RCA cables and TOSLINK optical cables do the same job, and the optical cables don't have better bandwidth or let you do longer cable runs.
You get two channels of PCM audio, or more channels of lossy audio. If you're running stereo or 2.1, I think it makes sense to configure your Roku to send a stereo S/PDIF signal over TOSLINK.
I understand how optical works - its just that my receiver only has optical or RCA. Early 2000s receiver. Roku only has HDMI out and Toslink. Trust me - definitely the best (and I believe ONLY way) to get 5.1 to this thing is using Toslink. No S/PDIF connections on either device.
That's because S/PDIF isn't a type of connector. It's commonly carried over coax cables (with RCA connectors) or optical cables (with toslink connectors).
I had to switch to a TOSLINK cable for my soundbar. My LG TV and LG Soundbar are really meant to connect via ARC using HDMI cable. However, mine had serious problems with going out of sync and playing distored audio for 10-15 seconds before correcting itself. It was very very annoying. I switched to a TOSLINK cable and no longer suffer that issue.
Yea that is a somewhat common issue with HDMI and audio - if the device passing it through cant keep up then there can be sync issues. Or the source device can also be a problem (or an app on the source device).
I have found toslink and SPDIF to be both very reliable in this though (probably since they are such mature technologies at this point).
Make sure your TV is actually outputting the correct format over Toslink to your soundbar - many times they default to 2.1 instead of 5.1 or the wrong format (Assuming you have a soundbar with more than just 2.1). A lot of TV's also downmix to 2.1 audio if you pass through a source to them and then use the Toslink output of the TV to a receiver (like say if you did Apple TV --> TV --> Receiver)
I can't remember ever having a receiver fail. Every receiver I've owned still functions. If I visit my dad, he still uses a receiver that he got in the 1980s.
Older receivers (1980s) can blow an output transistor, which is a pain (fixable if you are skilled). Newer receivers are often built with integrated power amps that have extensive protection circuitry... they're truly impressive, and hard to accidentally damage.
I've done some amplifier repair work. The amplifiers I repaired were typically much older (1950s, 1960s). The most common failure modes are fuses blowing, potentiometers failing, capacitors failing, and PCB-mounted jacks failing.
I still have a 1970s model head unit that sounds just as good today as when my dad passed it down to me as a teenager in the 90s. The thing I loved about it so much is it had A, B, A+B mode so that it could drive 4 speakers. It wasn't quad, but I could put 2 sets of stereo speakers in different rooms.
Optical audio in consumer equipment is very limited. It seems like it should be high-bandwidth because it's optical, but it falls short. For consumer audio equipment, ordinary RCA cables and TOSLINK optical cables do the same job, and the optical cables don't have better bandwidth or let you do longer cable runs.
You get two channels of PCM audio, or more channels of lossy audio. If you're running stereo or 2.1, I think it makes sense to configure your Roku to send a stereo S/PDIF signal over TOSLINK.