I have the Integra 9.8 pre/pro feeding a 50" Pioneer. It also has a Reon chip not sure if it is the same chip as tge 8.9 or a predecessor.
When I did the ISF set up we looked critically at all of the scaling options. In the end we opted to let all the processing take place at the sources.
Really all that you are talking about upconverting to 1080P is the DVD, as the BluRay is 1080P native. DirecTV HD maxes at 1080i - it cannot be rezzed up to 1080P.
What we discovered in our testing of the 9.8 - and this is the point you need to research and compare the two units - is that the Reon corrections are applied globally. Meaning that the same correction is applied to all the video inputs.
We didn't want the Reom processor applying anything to degrade the BluRay 1080P picture. So we opted to bypass the Reon entirely and run all four video sources in HDMI pass through mode.
I believe that the newer 9.9 resolved this problem and allows you to create a custom setting for each HDMI input. This means you could use the processor where you wanted to and run it in pass through where you didn't want to.
FWIW the calibrator and I both thought that the Oppo 981 looked every bit as good, if not better then the Reon.
If'n it were my nickel, I would wait for the new Oppo BluRay which will also do a great job upconverting DVDs, plus DVD-A and SACD.
Or get a Oppo 983 for your DVDs which has the Anchor Bay chip, and get something like a Panasonic 30/35 or 50/55 to handle the BluRay which requires no upconversion.
Run everything HDMI to the AVR, and from the AVR to the Pioneer. The AVR handles the switching beautifully and its great to have audio follow picture with no effort.
Finally, one of the best things you are buying in a new AVR is the Audyssey MultiEQ feature. The latest gear has a couple of nifty new features so be sure to compare those on the two units under consideration before making a final decision.