Have you thought about a sound bar and a sub. Pretty amazing for a smaller room. I was impressed, and I have fairly nice speakers in my main system.
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You can go with a 2 channel integrated amp or separate pre amp/amp combo. Both of these will give you line level inputs to hook up a universal player like a Oppo 103 or 105 (for BR's and Pandora Netflix ect..), you can also hook up the Cable receiver to another input most are Unbalanced (rca) and some have Balanced (xlr) connections for inputs and outputs. Most Integrated amps or preamps have twin outputs so that is where you connect your amp for Sub.
I take it that you are going to move your system to the downstairs room and not getting a different system, am I correct on this? It seems then you simply use the analog outputs of the BDP and cable box into the AVR. I would set your system as it is, experiment with speaker placement in the new room prior to making other changes. I have found that 2-channel system can work great for video while providing the best return on investment for music enjoyment. Having a dedicated room to work with is a plus. Keep us informed as to your approach.
Sorry been meaning to respond for a while. Had a problem with my account.
Anyway, What I am trying to do here, is build two systems. One upstairs, in a room that is 18WX35DX14H. I plan to make a nice 2 way system with dual subs, so will be running PSB T's with dual subs with a smaller footprint then my VMPS. The wife also likes to stream through our BDP-790 Sony Blu-Ray, and Comcast. I have a Cambridge Audio 640R, but its seems odd to only use 2 of the possible 7 channels. Seems there must be a way to loose the Receiver, and make a better sounding system for music, with occasional streaming.
Downstairs I already have a full 5.1 set of Swan Diva 5.2's, and I will use my VMPS sub downstairs. I will be getting a 4K projector that I can get up to a 130" screen. I would also like to build a media computer to incorporate it into this system.