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Whether you agree with the finer details is really neither here nor there. With the 14.2 upgrade there has still been a down grade of functionality to the 4th gen HD only models, as they have removed the 'Audio Output' option and there is nothing to replace it.
The 'audio output' method although not perfect was better than the option we have now of connecting to airplay everytime we want to use the apple tv, which my 4yr old cannot manage on her own, (which incidentally also does not include system clicks and I never had any issues with the old method with IPTV, I use channels and iPlayTV)
Fair enough. Sling doesn´t output audio to the Homepods using the old method, and neither do video games. I suppose its app dependant. Just one thing. By "the option we have now to connect to airplay everytime" do you refer to long press the Home Button on the ATV, and then select the Airplay menu on the control center?.

It used to be possible to long press the play/pause button on the siri remote to bring up the airplay audio menu directly, right?. Thats also gone?
 
Fair enough. Sling doesn´t output audio to the Homepods using the old method, and neither do video games. I suppose its app dependant. Just one thing. By "the option we have now to connect to airplay everytime" do you refer to long press the Home Button on the ATV, and then select the Airplay menu on the control center?.

It used to be possible to long press the play/pause button on the siri remote to bring up the airplay audio menu directly, right?. Thats also gone?
Yes, its a long press of the button with a 'TV' on I always assumed the menu button was the home button. TBH I never even knew about the long press of the play/pause button, I always used the 'audio output' option as it didnt need to be set everytime, only on occasion.
 
I was able to select my homepods as default audio. Worked flawlessly for a few days but suddenly stopped working. Have tried resetting homepods AND ATV but keep getting error message that says “Apple TV couldn’t connect to ‘Living Room...’”. ATV and Homepods are in same room as each other. Any ideas?

UPDATE: Worked with a specialist and re-reset everything. What we did differently than what I had done is reset the Homepods one at a time and before resetting the second one we set up a single HP as the default audio output for ATV (which we also reset). He also had me reset the HPs manually (as opposed to via the Home app)
 
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