Mcintosh processor

Sorry, I have never owned Krell equipment so I can't comment on it. I do prefer a separate preamp for stereo in passthru with a prepro for HT use that way you get the best of both. I was going to order an Oppo 205 to replace my 105D but after I found out that it can't stream anything I decided against it. I watch Netflix more than Bluray discs.

Can I connect Apple TV to oppo 205 and use its video processing to improve quality of picture 

Can someone comment on mx134 vs krell HTS7.1 
I would like to connect oppo 205 via analogue to either and use it for both 5.1 for movies, sacd, and 2 channel stereo. 

I like macintosh warm sound, and don't mind it for movies either. Just need to know which one is a "better" machine, in terms of value, build quality, reliability, etc. Thanks 

The two options you have here are both very old, so reliability is going to be a gamble for either. They both were originally good build quality units. You might get a good unit and be fine for 5 years, but all electronics are going to be prone to failure after 15-20 years regardless of how well they are made. The biggest point of failure are the electrolytic capacitors. You could have someone re-cap the main power supplies in these units and that would help extend the life. I think the mac could be recapped throughout if they used through-hole capacitors. The Krell used all SMD caps on their analog circuits which will be a pain to replace. Both are/were In the same price range. There isn’t one machine that is "better". They are just different sonic signatures.

if you wanted something that will last a long time, then buy something newer. Like the Marantz AV7702 that I suggested before.

MX119 is newer than 134 has balanced outputs and close to my price point. I really like  MC aesthetics, Krell looks like a a cheap aluminum box from the 90's. With mx119 I should be able to play sacd's and hi def audio via analogue connects from OPPO correct? I am assuming ill get better 2 channel preamp from mx as well. Someone is selling a brand new in the box mx119, would would be a fair market price for that unit? 
I'm still gonna get KRC3 to match my Krell amp, I just can't help it.