Hey again Craigert …
I've read most of what everyone is saying. This is a great thread you've got going. Honestly, I don't think I disagree with anything on here! Not that I'm the gods gift to whose right or wrong...but seriously...how often does that happen?
So another option: Your disc player likely has a variable output option. Check your owners manual. If so, you can add a 2 channel amp in your budget (or 5 channel amp). Connect your disc spinner Front left and Front right direct to the new amp. Then connect your disc spinner surround channels to your Receiver by analog outputs. I actually went a step further while revamping my system by using my disc spinner as the preamp, but that would be dependent on your input needs, and what else you have to connect into the system, as well as the inputs that may be or not be available on your disc player/DAC. Anyway ... Use the variable output of the disc player to control the volume of the whole system. Then,,,down the road,,,when you're budgeted for a preamp, you can add that to your system and toss the receiver entirely. There are ways, and there are ways,,,but this is just one alternative. I do 100% agree that in your upgrade, to have your Elite as the Pre for your stereo channels, would be a detriment. I did that exact thing with my Onkyo Integra when I was revamping, and with the improved amplifier and disc player, I could tell the Integra was veiling everything and holding it back. Getting it out of my system was the best thing I could have done.
If your disc player has an input, but you have too many sources to play thru it, ie; video game, cable box, etc....you could actually plug your receiver into the disc players input, and that would give you your FM/radio, and all the other inputs into the receiver, but the best sound (discs & movies) direct to the amp from your disc player, again, with it controlling the volume of the entire system.
I still drive my entire system with my disc spinnners variable output. I've had my Halo A-51 amp on the fronts before. It now pulls surround duty. But where I'm going is this: In two channel mode, the A-51 (5 channel amp) is superior to the A-31 (3 channel amp) or A-21 (2 channel amp). Its in 5 channel mode that its fronts don't perform quite up the level of the A-21. This all comes down to divvying up the source signal. Yes there's more than just transformers to it all... a LOT more. Yet,,,there is a simplicity to understanding that part of it. In the case of the Parasound Halo lines, they have a primary Toroidal transformer, and then an additional smaller toroidal transformer for each channel. To answer an earlier question by you, yes,,, some companies do provide more transformers in their surround Amps. You'd have to google to see who does or doesn't. The NAD is an outstanding product,,,but honestly, I 'm surprised to hear that a Rotel was considered superior to Emotiva. I guess its all model dependent though. Personally I preferred the Parasound Halo to them all, without ever having auditioned the Rotel.