If given the choice, I would defer to the TV in almost all setups. Only exceptions would be if you are dealing with a lower end TV and a high end receiver with something like a Reon scaler.
Problem with a lot of recivers though is that many times they don't give you a choice in the matter either.
If you send at the TV's native resolution no scaling will be done at the TV. If you turned it off (if it is possible) all of your SD channels would be in a box in the middle of your screen.
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