Yes an integrated amp with HT Bypass can be included in a single system with your AVR for both movies and music.
All of your analog source components would connect directly to the integrated amp - not the AVR.
A good integrated amp will have a better pre section than most AVRs.
I'm just tossing out ideas that would be cost effective given your budget.
If you are giving up on movies and want to get rid of your AVR and just want a music system - then more options are open to you - including separates.
But even here - a good integrated amp can get you more bang for the buck. However, you do give up flexibility in future upgrades if you want to change out the pre or amp.
All of your analog source components would connect directly to the integrated amp - not the AVR.
A good integrated amp will have a better pre section than most AVRs.
I'm just tossing out ideas that would be cost effective given your budget.
If you are giving up on movies and want to get rid of your AVR and just want a music system - then more options are open to you - including separates.
But even here - a good integrated amp can get you more bang for the buck. However, you do give up flexibility in future upgrades if you want to change out the pre or amp.