You don't have to go all the way down to the AC3 codec. The audio only has to be processed (re-encoded) for the the fix to be applied so you just step down the audio one level ie DTS-HD to DTS and so forth.
I'd like to take up the cudgel for AC3 at this point, because you make it sound like AC3 is the inferior codec ("all the way down to AC3").
That's a very old debate and most support in favor of DTS comes from the DTS claim, that they use a higher bit rate, so the sound surely has to be better. But that's marketing.
Dolby claims, it doesn't
need that much space, because their tech is better. Marketing again.
What is known, is that when comparing DTS and AC3 at similar bit rates, DTS loses. So you can say, that AC3 has more efficient compression.
Comparing AC3 and DTS at their highest permitted bit rates (speaking of Blu-ray discs) is more difficult - I can't find any really good sources that come up with credible scientific test results proving either way.
You can't make an objective comparison due to the nature of lossy compression (psychoacoustic auditory masking etc...) the only way to "measure" the quality remains the human ear, because the compression is based on its flaws.
But all in all it seems like it is close to impossible to tell whether DTS@1509 or AC3@640 delivers better quality.
Even if you're able to tell "some difference", you can't say, which is "better" or closer to lossless.
I'd recommend AC3 any time, simply because it uses less space and I, for myself, know that I will never be able to tell the difference.
Here's a nice article, that tries to shed some light - yet in the end doesn't, because it's such a slippery topic:
http://www.practical-home-theater-guide.com/dolby-vs-dts.html