If the amp section is still in good order (receiver appears to date back to 2003) then its 200W per channel @ 8 Ohms and 400W per channel @ 4. The receiver according to the reviews has the necessary inputs (8 channel, presumably 7.1) and 10 pre outs (probably the same but with 2 additional sub outs).
The receiver is capable of decoding upto Dolby EX and DTS ES and can power either 7.1 channel surround or 5.1. with an additional stereo zone 2.
From the looks of it you are only missing out on the HD audio formats, Dolby Atmos, DTS X and HDMI input and switching.
So if, as mentioned earlier regarding the amp section, pick up a cheapish receiver with above capablities and use the Sunfire as power in a pre-pro arrangement. You would still require an additional amp for handling the extra Atmos, DTS X or Auro 3D speakers, but that is probably true of any suitable replacement receiver too.
Even at its original price of 4K+ there is little to touch that level of power in the current receivers without going pre-pro.
Using the TV as the switcher will not get you any better decoding than is already present, in fact it will likely downgrade, and only be straight DD or DTS and PCM stereo.
If the amp section is troubled then you are probably looking at a hefty repair bill or having a nice historical paperweight.
https://www.manualslib.com/manual/477436/Sunfire-Bob-Carver-S-Ultimate-Receiver.html?page=12#manual Check out page 12/13, sections 13 and 16.