Ditch HT? Upgrade help please...

Right now my system's heart is a Theta Digital Casablanca I preamp/processor with standard DACs. I've got a pair of ARC VT 100 Mk IIIs that are passively horizontally bi-amping ProAc Response 3.8s for the front, and use a VT-50 to power a pair of Monitor Audio Bronze B2s for rear surrounds. Long ago, I ditched the concept of center channels, preferring the Theta phantom center mode. Anyway, I was about to upgrade the Casablanca to III status and drop in a set of Extreme DACs, which is about an $8K upgrade when I started thinkin'...

I realized that I'm hardly ever bothering to turn on the VT50 to power the rear channels. Given that I really don't seem to care that much about HT, I'm now wondering if I really ought to be looking at alternatives, like ditching the Casablanca/rear surrounds and getting a decent pre- and separate DAC. I'd love to hear what people would suggest as combos...

For example, one combination that comes to mind would be an ARC LS-25 mk II and a Theta Va--any idea how that would compare to the III upgrade and Extreme DACs?

Sonics is obviously key. But, in terms of other features I'd be looking for...

I need selectable inputs on the DAC. I have a Theta transport using coax, CATV using toslink, Audiotron using toslink, and 2 game systems using toslink. The video stuff runs through an Audio Authority switchbox, so I guess I just need three inputs--transport, Audio Authority, and Audiotron. At least two need to be toslink, and I prefer coax for the transport.

I need some convenience features, like remote control. For both DAC selectable inputs and pre, unless DAC autosenses inputs. Better yet, remote control *and* RS232 control.

I want a balanced pre. Would prefer XLR outputs, and a preamp with dual front outs or one capable of driving a pair VT 100s with a Y splitter.

Should I worry about DTS sources getting messed up? My Theta lets me run a phanton center mode... What happens with a stereo DAC fed a digital DTS signal? Can you select a phantom center mode or stereo mode?

I'm about 50/50 music/video, but beginning to understand that I really don't care that much about the video side, as long as the dialog is audible. My musical taste tends to be mainly rock, ranging from classical punk (the Clash, Husker Du) to country/folk (S. Earle, T. Van Zandt) to 70s AOR (Steely Dan, CCR) to alternative (Death Cab) to Blues (Johnny A., Koko Taylor). Been caught listening to Opera, Jazz, and other stuff on occasion too. Really value components with transparency, speed, accuracy and *slam*.

I'd be grateful for any input.