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We just had our first SONOS ARC delivered and have started putting it through “real” use.  Unfortunately we cannot even get out of the starting gate.   The connectivity limitations make it near impossible to use any differently than our 2 aging SONOS PLAYBARs.
 

We have tested using several different devices including 4 smart TVs (Sony and LG with eARC and ARC), Blueray player, Broadband TV set-top box, Media PC and Apple TV.  Some of these were just to ‘see if it works’ and not used normally.

Here’s the catch - the extremely limited audio formats make the SONOS ARC impossible to use via an ARC or eARC.

That’s a pretty harsh review. 
I can say that my 2020 Samsung Q80T, Sonos Arc, Gen 2 subwoofer and two One SL’s in my family room are working perfectly as expected. 
Like many here I have experienced some brightness from the Arc, however, it seems to be improving as each day passes. Watched some content today and it seems the dialogue has gotten warmer compared to a week ago. 
So I have to completely disagree with your opinion. It’s your opinion and you’re entitled to it just as I’m entitled to disagree with it. 

Here’s the catch - the extremely limited audio formats make the SONOS ARC impossible to use via an ARC or eARC.

I’m not following. Are you not getting any audio at all? Or are you not getting Atmos when you think you should be? Give us a little more to go on here than “impossible to use” and maybe we can be of assistance. Because many of us are using our Arcs just fine. 

Watched some content today and it seems the dialogue has gotten warmer compared to a week ago. 
 

Without a base line one might get used to the sound. One of the oldest sales technique is to tell your customers just let the new equipment burn-in.  Well after 90 days one will get used to the sound unless it is really bad sounding. 

I am using the Arc with an LG OLED tv with eArc (an E9P).  It works great -- plays Dolby Atmos from an Apple TV and from internal apps.  Not sure what the issue is that OP is having.  The only real format issue I have heard about is Dolby 5.1 is limited to Stereo through the Nintendo Switch because Sonos doesn’t currently support LPCM (which it will).   

OP -- Make sure you have your audio settings in the LG OLED set properly. You have to turn Atmos on (when you are using the internal speakers) before you connect the Arc.  

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