The first thing to know is that HDMI and DVI are both digital formats and you can pick up inexpensive converters that change a HDMI cable to a DVI cable. It isn't 100% identical, but most of the time if you have DVI, like on your TV, you can likely run a HDMI device into it with a HDMI->DVI converter.
So, great! Your TV accepts digital signals and you can utilize HDMI.
So, you look at your HD cable box. HDMI #1
Look at your upconverting DVD player. HDMI #2
Add a PS3 to the mix. HDMI #3
Well, now you need to switch between those multiple HDMI sources. Seems to me that is when that HDMI switching built into your A/V receiver could be beneficial.
ENOUGH TO WARRANT AN UPGRADE?
In my opinion, most often, no. You can pick up external HDMI switchers, such as the 5x1 HDMI switcher from
www.monoprice.com and get HDMI switching for less money than replacing an A/V receiver which may offer you little else that you actually need.
The single big plus to HDMI switching on A/V receivers? HDMI carries the audio AND video signals. So, instead of the need to run both audio and video cables to your AVR, you just run the single HDMI cable. Great for people that are easily confused, but not necessary by a long shot.