Their analog circuitry is fine but as far as I can see, I too would steer well clear of any of their products using digital signal processing and software.
Instead of the pioneer however I would get a refurb Marantz (or Onkyo) from accessories4less
I recommended the Elite because, as a processor it has some components to it that are currently unmatched in the industry. All of the Elite models $800 & up use a Marvell video processor. It's one of the finest on the market. Here is a link if you'd like to check it out:
http://www.marvell.com/technologies/qdeo.html
The new Onkyos that are not out yet are switching to the Marvell processor as well. The Faroudja stuff isn't cutting edge any more (unless something is being released that I haven't caught yet - which is totally possible). The Elite units are built differently and laid out better than the Onkyos at this point. I haven't seen exploded views of the new Onkyos, but will check them out when they are available.
There are other features that the Pioneer offers in some proprietary circuitry and digital sound processing. Pioneer/Elite had to kind of reinvent themselves with this new line of receivers and I think they did well. The product is just more robust than the Onkyos, IMO. That doesn't mean I don't love Onkyo products. I think they're great, use them all the time, and they are certainly worth a look for a project like this depending on the savings!
PS: For what it's worth, I would recommend the KEF Reference 207/2 over the Revel Salon 2 for your dream speakers:
http://kef.com/us/loudspeakers/reference/207
And, for your toy car, I would go old school and get yourself a 1970 Chevelle SS with a custom big block - Black or Green with White stripes. Pure Badassery for you in both coming and going. That's my next project when I'm done with a 1962 Triumph TR3!
