With the 32-bit AKM DAC built into your new Denon receiver, I believe choice #2 is the way to go. The Sony Blu-ray player will be used as a transport in this set up, so you'll get to take advantage of the receiver's DAC. It doesn't make sense to use a coaxial hook up to the Denon since you're going to need an HDMI hook up to take advantage of multi-channel encoding on the blu-ray player. HDMI from the blu-ray to the receiver, HDMI from the receiver to the TV. However, if you want to still be able to enjoy loading 5 discs up into the old Sony CD changer, you can still have that via RCA, but I do not believe you would be getting sound at the level that the blu-ray and DAC's in the receiver would give you.
In my home theater/stereo in my living room I have an Oppo 103D blu-ray player (2 HDMI's out). I use one HDMI to my Anthem receiver and the other HDMI to my TV. But when I want to listen more critically to my music, I listen to my desk top system in my office. I use a Cyrus CD t transport with a coaxial cable to a Marantz HD DAC-1 headphone amp/DAC and a pair of Beyerdynamic T 1 headphones. This system has higher grade power conditioning and cables (power, coaxial, USB).
Enjoy your new Denon receiver!