Someone else had a similar concern recently, and this was how I answered it based on my personal experience. Whether to take this route (or not) depends on one's objectives. If you want good value and maximum flexibility, then the receiver might be the way to go; if ultimate sound quality is your goal that might lead to other alternatives.
... the knock on AVRs is the possible lack of transparency. While that may be concern, IMHO it is offset by the utter versatility to obtained from the AVR. I use a Denon AVR 3805 as the term implies ... as a 'preamp/processor' to the fullest. It performs great preamp duty as front end for 2-channel listening. In "Pure Direct" mode, all Digital Signal Processing (DSP), video circuits, etc are shut off. So the signal delivery is about as pure as one can get from an AVR. I run the Denon's front L/R pre-out through a Musical Fidelity Tube Buffer/Outboard power supply to Channel Island D-200 monoblocks ... musically very satisfying indeed.
The other thing the Denon does, and this is the added bonus, is play multi-channel direct by taking "External Direct" from my Tube Research Lab modified Sony ES2000 CDP in 5.1 mode. It requires 6 extra interconnects; and it's worth it. Great results with multi-channel SACD source material. You also have the choice of going direct 2-channel from CDP to 5.1 surround using the 3805's DSP function. Or, the DSP can process a straight digital signal from my Oppo 970HD DVD player in HT mode for movies.
Finally, this particular AVR has the Auto Room Equalization feature ... and a few others have this option as well. My previous AVR, the Denon 3803 did not include this capability. Have you ever spent the greater part of a Saturday with SPL Meter in hand, calibration CD playing over and over ... trying to get it just right? The Auto EQ eliminates all that. Once it's set, switching between processed sound - music, movies, TV - and 2-channel listening is very easy. Just my 2 cents.
Strateahed