Thinking of going the nvidia shield route as Apple TV isn't able to play back overhead Atmos content. Infuse mixes the Atmos objects into a PCM stream but that has no overhead channels.
Correct. If you have an atmos setup then the AppleTV will convert TrueHD atmos and DTS:X to PCM. It will play back Dolby Digital Plus atmos however, from web rips etc.
It’s a shame because everything else about the AppleTV is such a nicer experience.