SQ! - avr vs high end stereo preamp, who wins SQ challenge? And why

The short answer to your question is a question: what is the money spent on in the box you buy? The more it’s spread out, the less quality in the component parts. Then, there are the priorities of the maker to consider -- who is our market? What are they looking for? What do they care about?

I've noticed that when I listen, if I'm watching something (even just the streamer display on my iPad), I'm not listening as closely. Now put a movie in front of me. I still notice the sound but I don't focus on the sound. Why spend money there, if you're the designer?

Good short answer: https://www.youtube.com/watch?v=Ag5G11O9CrE&ab_channel=PSAudio

Get a recommendation on AgoN for an Integrated Amp that suites your needs ... if you decide to use an external DAC then you will want suitably good IC Cables ...

An AVR is a jack of all trades, master of none and designed to hit a palatable (and aggressive) price point.  Think minivan vs. Porsche.  If AVRs used parts quality comparable to good stereo preamps they’d cost multiples of what they do now.  Plus there are the inherent problems of having noisy digital circuitry in the same box as relatively small and sensitive analog signals that would require substantial shielding, and on and on.  Companies like Anthem with audiophile roots do much better than most with their AVRs in terms of 2-channel performance, but the limitations still apply.  Anyway...