While the JAP solution would be fine for matrix/multi-room setups. To use it in a main setup like this (a theater room I'm guessing), may not be the best choice.
It DOES have compression, it is NOT bit-for-bit original signal. If the goal of this room is picture quality, this is the wrong product. If this is just a multi-use room and picture quality is not top priority, then it should be fine. Most Joe 6packs won't be able to tell the difference.