I gotcha.
So sounds like for me... since I don’t what anymore than stereo and a center channel possibly... and my subs do not have XLR.
For a an extra 1700$ For the AV 70. All that I would add is a better built in DAC for that 1700$. Which isn’t not worth that.
so probably better get an AVR and add DAC separate for less.
Since I didn’t hear Anthem Room Correction is better than Audyssey. Then get a Denon 3700H for 1300$ and add the power amp to it using the Denon for a Pre amp instead of buying an expensive pre amp. Then add a DAC to it if I don’t like Denons DAC.
Yes if I were in your situation I would grab an AVR-X3700H, and use the savings to get a good stereo power amp such as Monolith's, or Anthem MCA225, or the Purifi based Buckeye amps for even better specs verified by bench test if you are on a budget.
As far as external DAC, unless you use analog input direct mode, it really would make no difference but I would do it regardless just because I want to be able to play DSD256 so that I am not limited to the available digital files I can purchase. I do not believe those so call high resolution files are better, but I did find there are more top notch recordings from the bucket of the DSD256 and 24b/192 kHz PCM files. Recording quality is by far the most important contributing factor to good sound quality, in my opinion.
If you are one of those who believe in DACs making audible difference then you do have the option to use a good media player such as JRiver so that you can use direct mode that would disable Audyssey REQ, and use JRiver's very versatile/flexible PEQs instead. That way your signal from the analog output of your favorite DAC will remain analog and pristine all the way to the preamp outputs.
The same applies to Anthem ARC, as soon as you use REQ, the signal has to be digitized so if you use external DAC, it will be worse (in theory) because it will get converted twice.
In fact, Anthem's analog inputs will not bypass the ADC/DAC path as it does not seem to have the direct mode that works like Denon, Marantz and Yamaha's, that would bypass the ADC/DAC block. May be it would, but I doubt it based on their FAQ's ambiguous response.