Not to make things more complicated, but I just realized I can kill two birds with one shot here by including a DVD in this system. So, I looked at this unit:
TEAC DR-H338i
The trouble is, although it has an HDMI output, it surprisingly has no HDMI inputs at all. I would need at least two HDMI in (DVR & BluRay).
So, now I'm a bit more unsure than before, but I think the DVD route works better for me since I can consolidate this with my A/V system in my family room. It doesn't need to be high-end, I still have my full 5.1 system in my media room, this is mostly for my kids.