Upgrade AVP or separate preamp/DAC for 2 channel?


My current set-up is:

AVP - Onkyo PR-SC5509
Amp - Moon MC-8 channel amp
Speakers - Focal Electra Be 5.1 speaker system (1028 fronts, 1008 surrounds, with matching centre and sub)

I'm considering replacing the AVP with a Denon AVP-A1HDCI (with XT32) OR adding a 2 channel preamp / DAC such as the new Audio Research DSPre (DAC and preamp combined).

I'd be interested in any thoughts on what (if any) improvements I might gain for HT and/or 2 channel by adding the Denon AVP or separate 2 channel preamp. Would the Denon AVP significantly improve the multichannel sound as well as the 2 channel sound (I'm assuming there would be at least some improvements on 2 channel over the Onkyo AVP)? Or would I be better off sticking with the Onkyo AVP for multichannel and adding a separate 2 channel preamp/DAC?

Many thanks in advance!
djruss27
Thanks again for the replies. Extremely helpful!

Soix, in particular thank you for your detailed reply. I was considering the Bryston SP3 (and the Cary Cinema 12), but no room correction ruled it out. I understand that both sound superb on 2 channel though.

Airkitty, I haven't done the Pro calibration for XT32 but I will look into that for sure.

Based on the responses, I think sticking with the Onkyo AVP for multichannel and adding a decent 2 channel preamp and DAC is the way to go.

In terms of which preamp / DAC, I am partial to the ARC equipment, but any other recommendations would be gratefully received!
ARC preamps with HT bypass have an input or remote button labelled "PROC" for "PROCESSOR".

I build my own speakers, so do a lot of in-room measurements.  The two places where DSP / room correction turned out to be critical was the subwoofer and center channel.  I decided to get a miniDSP.  It's kind of a geeky solution for most though, but in my setup it works wonders.  I have Zero DSP on 2 channel listening, and when movies start up it's a seamless sound.

I also did some room acoustics, with a pair of GIK soffit traps and 5 panels. I'm very happy with the tone.  Now I'm thinking of an ARC 2 channel preamp for better imaging.  We'll see.


Erik
The conrad-johnson ET3 is an excellent preamp,  it is a full featured remote unit that has a unity gain HT bypass......you have a great amp and speakers so something like it would be a good investment