It honestly depends on what sources you have....Clearly you have Blu-ray and the PS3 will do an adequate job of upconverting standard DVDs. If you have standard cable or other SD sources you may want to consider having an upconverter. Although by no means use this a stand-alone gauge as to which AVR you will pick. As the higher end Onkyos have the best built-in upconversion capabilities with their Reon chips. However, you could always get one of the other great brands--like Denon, Pioneer, or Yamaha. And you could purchase an external video processor to use with the AVR and this would do a better job than even the Reon with the Onkyo...
Lots of possibilities and there is also the debate of just how beneficial upconversion is. You have to remember a SD source will be SD not matter how much you spend on upconversion and processing capabilities. Most of the time a good display will do the job of upconversion and scaling just as well....
