My AV7005 has the same VP as your SR7005. I think the benefits of those famous ABT/Realta/Qdeo VPs are grossly exaggerated by many users/reviewers because I see no noticeable improvements using the VP of the 7005, same experience with my old AVR-4308. Also no such luck with any of my BDPs including the Oppo 95. I know I will make people laugh when I say this (the truth, to me anyway) but the only player that makes more of a difference (better) for me is the Toshiba XDE-500 and that's why I am still using it to play my DVDs. My $59.99 Philip DVD player isn't bad either, no worse than the 7005. I know it is hard to believe and it may be because I have a smallest 50" Elite plasma. Some will say if I had a 100" screen I would notice more difference but then why am I able to see major difference between a good (quality of transfer) DVD and an average one on the same small screen?
I suggest you try playing some good quality DVDs first before you draw the conclusion that your TV does a poor job in deinterlacing, upscaling etc.