No, not expecting to convert a low-end receiver to downconvert
HD. It's not essential I receive 4:2:2 standard def. video either - just wanted to explore the possibility. I know it's computationally expensive to decode HDTV streams. 4:2:2 is still standard def (720x480 NTSC) though but with a greater color space. With access to the stream data, I believe with some relatively simple manipulation a 4:2:2 stream could be altered and decoded as 4:2:0.
An analog example of a similar technique is "quasi-SVHS" playback now available even on many low-end VHS VCRs. It's *not* full SVHS but at least they can play a SVHS tape, albeit only with VHS quality.
Receivers such as the Lifetime Ultra have a relatively low (compute) power main CPU to handle control and OSD/user interface functions - doesn't it run at something like 80 MHz? I'd actually forgotten that when first posting the question. More likely there is another chip doing the MPEG video and audio decoding, possibly integrated with the video buffer memory and DAC. Some of those dedicated decoder chips have uploadable microcode - it depends on the mfr. and model. For instance, the chip on my Hollywood Plus PC MPEG decoder card (also known as Creative DXR-3) requires a microcode upload as part of its initialization.
4:2:2 is different alright, but still basically an MPEG-2 video stream, and IIRC that color space, along with the more standard 4:2:0, are defined as part of the MPEG video spec. Need to check that out though, esp. since you mention it being Sony's creation and therefore possibly proprietary and specs not generally available.