Where to go from here?

OP,

I think you will find the vast majority of audiophiles still require/use a preamplifier, even if they do not have an analog end. The straight from source to amp requires equipment that is exceptional and compatible. My guess is 90%+ have not been able to pull it off and have gone back to preamps. Unless, you are incredibly experienced and willing to swap all of your electronics I would not try it. You are likely to end up with dry analytical sounding sound.

The really important decision here is the kind of sound you are looking for. Extremely detailed, or detailed and musical. Let me put my 2 cents in here. You probably want musical… tremendous details sound with slam like a great thing… but it frequently lacks the emotional connection most folks actually crave.

As far as keeping the Denon. Ok. But mixing HT and audio generally kills the audio side. Compromise is on the side of audio, They have two different objectives. If there is any possibility of separating the functions… I would recommend it. I would rather have a tiny separate room for my audio system then be able to spend 5 times more and combine them. I have heard incredible systems in rooms the size of a closet and horrible combined HT / audio systems costing many times more.

+1ghdprentice!

I used to have what I thought was a killer 5 channel surround system with also great 2 channel stereo.  Fortunately my processor broke and led me to exploring 2 channel only.  So much better AND it images so well it is (for me) perfect for the video we watch.

Also totally agree the pre amp adds a lot to a two channel set up.  I am not a Macintosh fan and find them warm and dull sounding compared to my Audionet stuff and much other stuff as well.  The Tambaqui I do have and it is amazing, but do not use its volume control as it strips bits and you lose resolution.  I have tried several nice DACs without a Preamp and always found it  better with a Preamp.

For me, if you want an integrated, get one without a DAC so you can find your way independently.  Integrated + Streamer +DAC  or Streamer  + DAC + Preamp + amp(s).

A consideration to keep your cost down, then be able to expand down the road if you desire would be the separate 2 channel Parasound ZPre3 preamp, which has HT pass through. As your Denon has the preouts necessary: ‘front’ preouts to the ZPre3 main input, then out to your amp. In pass though mode, the Denon will still use your amp for HT, just as you do now.

At that point, you could experiment with various DAC’s over time, connected to the Parasound ZPre3 for seperate 2 channel music bypassing the Denon entirely. 

This would provide a lot of options moving forward. 

I also have a combo HT and 2 channel setup in my living room, but all 2 channel is separate from the HT AVR completely.  I had a Parasound Zpre in my main system, but now doing the same through my fairly new Belles Aria Signature preamp with HT pass through. A step-up no doubt, but my Parasound ZPre3 is now in my bedroom system, and don’t really want to sell it….a great little preamp.

The av will be out of the 2 channel system entirely. I am shooting for detailed and musical. I agree ghdprentice.  I much prefer  engaging music than just hyped up sound details.  I can wrap my head around seperates. I have an av closet so i have the space. Another bonus is that changing one piece at a time lets you focus on a components effect. One piece at a time is easier to budget.

Also i know i prefer neutral. Any gear that i have tried and liked did not emphasize either the bass nor the  treble. Also i agree with some reviewers that entry cost gear is detailed but its a card board cutout of the sound. I get that. Where is the noise after a sound is played on cheap digital? Each dollar more spent seems to get a little more natural reverb and decay instead of an abrupt end of information after a note is played or sung.