<font color='#000000'>Kano,
These are all valid concerns. I once owned the Sony TA-E9000ES processor. There are some things I actually miss about that unit. I found it to be a great processor, with moderate fidelity.
Since this processor, there have been many changes, some of which you outlined in your question. Some of the changes are positive, and others are more toward marketing and trying to keep the technology changing every year.
I think in the time you've owned the Sony, there has been some worthwhile new features in products, many of which fall in your price range of $1k.
For starters, even though the Sony has the Virtual Matrix mode (in the upgrade), it isn't near the quality of a good processor/receiver that has Pro-Logic II.
Depending on your system, there may be some benefit in an "upgrade" to new hardware. But in the $1k to $2k range, I don't think I'd consider separates. Many of the low price processors, even though they have the latest gadgets, will not be much of a sonic improvement to the Sony. We've had them side by side and know this to be true, at least for the units we checked out.
If you are looking for video upconversion and an improvement in sound quality, options, and new formats, I'd consider the Denon AVR-3803. It has everything you're looking for, including high quality processors and DAC's.
Good luck, and let us know what you decide.</font>