videos are encoded AAC which HDMI ARC doesn’t support.
Are you sure HDMI ARC doesn't support that? It has been along time since I looked into this but It is my understanding HDMI ARC supports whatever Optical S/PDIF supports and more as it has a higher Audio bandwidth. Basically you would almost always pick HDMI ARC over Optical unless you had some very specific cases like long distances cable runs or lack of physical connections for example.