IMO, you did this backwards. In my experience it's always wise to pick the speakers you want first, then the receiver. You budget isn't balanced for the best audio. If the video switching is your primary concern I understand you situation, but if audio is your formost concern I would reconsider your budget and start by looking at speakers instead of receivers. Look to spend 2/3 of your audio budget on speakers if you are looking to audio performance. If you can't afford to put 2/3 of the budget toward speakers and you are set on getting the Yamaha I recommend getting either a decent pair of floor standing speakers (call that solution 1), or a better pair of bookshelf speakers (call that solution 2).
If you chose solution 1 you should add your subwoofer center and surrounds at a later date when the budget allows. The last thing you could get would be the subwoofer, really it's all up to you in what order you get the components. Let's say you chose solution 2, which may be more costly in the long run but may also give you the better performance. As budget allows you purchase matching floor standing speakers and you move the bookshelf speakers to surround duty. Later on, again when budget allows, add a center channel and later a subwoofer. Same as before, it doesn't matter so much what we think of the order of component additions, but what serves you best.
The last alternative would be to get either a sub/sat configuration from an array of brands. Definitive Tech, Paradigm, Energy, PSB to name a few. Or do a search for Athena on
AudioAdvisor where they have some killer prices on very good speakers. The only problem is the speakers might not fit your tastes, no speaker fits every person. I should also mention that Athenas subwoofers aren't anything to get excited about.
