MDS,
The switcher is needed to have the option to use those additional two speakers and be sourced by the cable box down on the other end, either through the TV speaker out or an additional amp from the cable box. Does that make sense? I'd like to be able to do the 9.1 thing with the separate amp or do the 2.0 thing from the TV/cable box setup (one at a time of course) either with another amp or the internal TV amp (I know they suck but are better than using the in TV speakers).
Ok, I think I understand now. The amp that you'd use for the zone 2 outs from the main receiver would need multiple inputs so you could connect the cable box to it. You wouldn't need a switch/speaker selector because there is only one pair of speakers. Like you said, it's really 'source' switching - either whatever source is being fed from the main receiver via its zone 2 pre-outs and the additional cable box at the back of the room that is directly connected to that amp.
If the amp is set to the input from the zone 2 pre-outs of the receiver those speakers would be playing whatever the main receiver is playing. If set to the input for the cable box, they'd be playing the cable box audio. An old receiver would probably be ideal for the purpose since it can switch between multiple sources and also provides amplification (and would allow you to connect more sources than just the single cable box).
Now if you were willing to go down to 5.1 in the main zone and have the AVR power those additional two speakers then you could have a different source from the main receiver for the two additional speakers and still retain the ability to play whatever source is directly connected to the rear amp/receiver. If the receiver has a menu option to switch between the zone 2 pre-outs and powering them directly then you could switch on the fly. When you turn off zone 2 pre-outs you'd be back to 7.1 in the main zone.
As for the IR repeater, the box would be right behind the TV in a room and I could place a sensor right on the TV next to the TV sensor itself. Would that not work?
Sure it would work, but remember you need line-of-sight to the IR eye. If you wanted to control the equipment from say the patio, you might not be able to point the remote at the IR eye and would have to run additional wires to place IR eyes in a convenient location where you could see it from wherever you are at and want to use the remote. You'll end up with wires and IR eyes all over the place.
I personally would go a different route - an RF remote and basestation. The basestation does need to be somewhat near the equipment and IR emitters from the basestation need to be placed near/on the equipment but the remote itself doesn't need to 'see' any of it and can be used from practically anywhere in the house.