Just wanted to point out, in case the OP is confused, the X3500H is not a 7.2.4 receiver. It doesn't have the pre-outs for the 4 ceiling Atmos speakers.
This is where things are really confusing with Atmos, as it can be applied from 5.1 receivers to the 13.2 Denon flagship. I found that $500 Onkyo with full 11 channel processing, but only 7 channels of amplified output (would need four more channels of amplification elsewhere).
We would need the model # of the old Pioneer to know how useful it would be as a multi-channel amplifier for his new receiver. If the old unit has analog inputs for 5.1 or more, then he could gain 4 channels of amplification quite nicely. Like my old Yamaha RX-Z1. It has a great amp section, but no HDMI at all. I could totally use pre-outs to run through the Z1 to get the power of that beast. But, it's not good for much else anymore.