OK...To ease my mind on spending a bunch for the AVR is to use it for the audio..... not video.... I still don't get it. Why do they put so much in them for video if the Blue ray players do all the work.
One advantage of the video proccessing/upconverting is you can hook a single HDMI cable from the reciever to the TV, then run all your devices to the reciever. Your reciever then switches everything and pushes the video over the HDMI cable. Theres not reason to run additional cables to your TV or switch inputs.
I run an 805, all my devices are HDMI currently. But if I wanted to I can hook some of my older game consoles (xbox, SNES, SEGA, PS1) to my reciever. And it will pass all that video to the TV over the HDMI port.