Hello Jay,
It seems like you want a system for 2-ch music and surround sound for television and recorded movies(home theater or HT).
If so, I have a suggestion that will be a good transition from an AVR to higher quality separates that you can build on as funds allow:
The main hub component of this solution is to buy a used Oppo 105 Bluray player. This is a very versatile product with a very high quality audio section that can serve as a preamp (but only for CDs and streaming since it has no inputs for other sources), CD and SACD player, streamer, surround sound processor up to 7.1 (but no Atmos) as well as an excellent Bluray video player (1080p but not 4K).
For 2-ch listening, the Oppo has left and right rca and xlr outputs you would connect to a separate stereo amp of your choice. This is a transition point into higher quality stereo playback since almost any separate stereo amp will perform and sound better than the amps in your Denon AVR. The l+r stereo channels double as your front l+r mains when your using the Oppo for HT surround sound playback.
For the other 5.1 or 7.1 surround channels, you could start out by connecting the analog surround channel outputs on the Oppo to the analong surround channel inputs on your Denon AVR. This will allow you to utlize the internal surround channel amps in the Denon.
When you have the funds, you can transition to better separate amps for these surround channels that would be connected directly to the analog surround channel outputs on the Oppo. You would have the option of using a high quality 5 channel amp or using a combination of multiple channel,stereo and mono amps for powering the center, side and rear surround channels. Remember, your separate stereo amp for l+r 2-ch music playback would double as the amp for your l+r front mains for HT playback.
Volume and source selection would be controlled via the Oppo’s remote. There’s also an analog sub output that can be connected to your sub if you have one. This output allows you to use the sub for LFE (low frequency effects) for HT and as a normal sub for music. The Oppo has internal menus that let you control the cutoff frequency for the sub and for setting and balancing the relative volume of all surround channel speakers including the sub.
You can connect the Oppo to your wi-fi, either through an ethernet cable or wirelessly, to receive software updates and stream music, tv and movie content from internet sources such as Apple, Amazon Prime, Netflix, Tidal, Spotify, etc.
You can also connect an external storage device for movie and music playback that utilizes the Oppo’s excellent Saber DACs for high quality digital to analog audio conversion on both video and music stored content.
When you’re ready, you can continue your transition to higher quality separates by choosing a preamp with HT Passthru to allow for more source components to be connected to your system and even further improve audio playback quality.
I utilized my Oppo 105 in exactly this manner for about 6 months, in a effort to simplify my system, with excellent results.
Tim