The use of power amp is only an option for him and if we explain this clearly to him he won't be confused. It is an option because he already has the Dacmagic plus that has suitable output and volume control to drive a two channel power amp. That means if he only has one source as it is now he can keep the DAC and just get a power amp. It is up to him to choose this option or the AVR options that allows multiple sources.
As to sub EQ, obviously they all claim to do the same but they don't all do the same equally well. Even within Audyssey, XT32 plus Sub EQ HT is much more effective than the XT version. I have used both and plotted a lot of graphs so I know that for a fact. Harman has done some
subjective (in my opinion) comparisons of several systems and the results were not surprising, not to me anyway.
http://seanolive.blogspot.ca/2009/11/subjective-and-objective-evaluation-of.html
Again, the OP is asking questions, I guess it is up to us to confuse him (unintentionally) or just provide alternatives with clear narratives.