Will I be able to simultaneously use the HDMI and Digital Optical output from the PS4 into my older TV with a HDMI/DVI converter and Digital Optical Output to RCA converter? Sounds crazy but kind of makes sense in theory...maybe.

Have you tested this configuration with a PS3 or 360? I don't see why it shouldn't work for the new consoles.

Not yet. Planning on picking up a Digital Optical Output to RCA converter soon to try on the 360 before the PS4 launches. Just wanted to know ahead of time.

Because HDMI is the only form of video output it supports, you can combine HDMI with TOSLINK outputs, convert and fool around with both.

Sweet. Hope it works. Getting the launch bundle w/ BF4. Excited. Now I just need a new TV.

Just a question: Why not update to a HDTV and/or receiver that takes PS4's native outputs? There are only about three reason not to update for technological/production reasons, otherwise just updating while costing more leads to a better outcome.

It should work fine. This is what I do with my PS3 now. I have a new TV, but my receiver is ancient, so the only way to get 5.1 is an optical cable. I have it set to output video over HDMI to the TV and audio over the optical cable to the receiver.