The XS3 is an analog amplifier, correct?
So, coming from HDMI, you will need some DAC between he digital system and your amplifier.
The section you quote, was about getting a signal into a streamer, which has a digital in and an inbuilt DAC. Then you can take the signal towards an amplifier.
(And, if I understand correctly, the detail was getting a digital system from a device with “HDMI only” (which some newer systems are) to a system without HDMI put with SPDIF digital input. So basically, splitting the audio-signal out of an ordinary HDMI cable to feed into older systems.)
I’m still using the little hdmi arc extractor. It has a built-in dac so it’s possible to go straight from the tv to the analogue amp (via the extractor) AV bypassed input.
It can be used in two modes:
Tv hdmi -> arc extractor -> rca out into amplifier (av bypass input). This works as you would expect from hdmi arc I.e. the volume buttons on the tv remote will set the overall system volume.
Tv hdmi -> arc extractor -> digital out into dac -> dac rca out to amplifier. This sounds better due to the better dac but now you have to control the volume with the Naim remote control.
Option 1 is a nice and simple solution (one remote). The only negative is when you want to listen at high volume the sound distorts a little. If you have sensitive speakers then this probably won’t be an issue. At normal listening volumes the sound quality is more than acceptable.
If you prefer to use a dac but, like me, you hate having to always compensate for lip sync issues, then 2) is a great solution. Because the audio feed is extracted from the hdmi arc signal the audio is ALWAYS in sync with the picture.
Either way, for £15 you can’t go wrong with this little device.