I don't have a subwoofer at this time, just 5 speaker system. You are right on with what I was thinking. Better avr and not need to get an amp. This would give me better options given the 860's shortcomings that I have already noticed. I don't listen to high volumes very often anyway. I have never owned a Denon before but alot of people on here speak highly of them.I shouldn't need anything more for my situation. Crutchfield gives me 60 days to try at no cost to me if I don't like it or have a problem. I have never listened to a Denon before so this way I have nothing to lose. Hopefully it will sound better, along with more options for the future.
This is the reason I would like the AV manufacturers to build a lower cost preamp/processor and 5-11 channel power amp- more power helps, but it would have to be a significant jump in output over the lower powered AVRs. Since it's unlikely that they'll build AVRs with a modular power amp built in, this would be the second best way to get people into the equipment they need. Yes, it costs more, but if someone buys an RX-V860 AND a power amp, it will be over $1000, anyway.
Look at the Denon AVR-X4300H- it's more powerful and it's on sale for less than $799. If you find that it's not enough power, and it's rated for only 25W/channel more, maybe you could go with a lower priced receiver with similar preamp abilities and add a power amp.
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However, if you already have some MusicCast pieces in your house, I would stay with Yamaha, but maybe the RX-V760 and a power amp to save money since the 760 only differs in its output and almost nothing else of consequence. If you already have HEOS, go with the Denon because that's built into their AVRs, now.