Should I upgrade to the Theta casablanca III HD

I have had a CB3 for several years as the initial hub of a newbie high end system. I was told it was the best pre/pro for audio. I have since moved on to a proper preamp and use unity gain through it for theater applications. I don't watch movies often, but when I do I want them to sound and look first rate. On the flip side, I am not criticizing black levels, etc. I have been waiting patiently and have finally come up in line for the upgrade to the CB3 to have it converted to HDMI so I can get BluRay and I assume better sound. However, the upgrade price is nearly $7000. I'm starting to wonder if I should buy a prepro in the $7000 range (anthem D2V, Arcam av888) and sell the Theta. Or even invest in another contender even if it is more expensive. The Theta may sound good, but doesn't have room correction (I have a highly treated room that sounds pretty good anyway). I ultimately wonder how much difference I will notice using a prepro for movies only. I need to make a decision on this fairly quickly. Thanks for the advice in advance.

Current system Wilson Alexandria 2, Wilson center, Boulder 2010 pre, Boulder 2060 amp, a pair of JL
Before you take the up-grade path, you might want to consider or at lease talk to Audiogon Member Dave_newman since he’s presently offering a Casablanca III with the HDMI Board and Supreme DACs… at what appears to be a sweet deal price.

I would do the upgrade.

Theta and Meridian have been the ONLY two manufacturers to keep an upgrade path for their pre/pros and they both make some of the best on the planet. You would be spending about the same cash to downgrade sound.

I am not sure why you have been waiting to buy a BluRay player as the video is substantially better than DVD. Can you not run the hdmi cable directly to your display and bypass the Processor? There are multiple HDMI to Analog converters available for almost any projector or display. I agree with Charles Hasen that it is best to keep your video and audio signals separated if posible. You could feed the hdmi signal direct to the Casablanca HD for audio only if you wanted to pay for the upgrade.
Street price for the upgrade is about $3500 (list is $5000), so I presume you (think you) need new at least one new DAC cards. One of the best kept secrets about the CBIII HD upgrade is that it will actually work with the original superior card. You can read about this in the Theta thread on AVS forum. What cards do you currently have?
I have 1 extreme and 1 superior 2. I am seriously leaning toward the upgrade at this point.
If you already own the cards the upgrade is a no brainer. I had the same two cards, but also a Marantz ud9004 and a six shooter, so I decided to stick with MCH analog and sold my Xtreme card. If you do not have a sunk investment in an analog signal path, get the upgrade. All CBIII HD users will testify their processor will blow the 7-10K alternatives out of the water.
Just checked your system. You got to be kidding me. The upgrade will set you back 20% of the price of your speaker cables, and take all your multi channel material up three notches. Whoever quoted you $7,000 (list price $5,000) for the upgrade probably checked your system as well....
Got the upgraded Theta installed last week mated with an Oppo BDP-95 running HDMI. All I can say is that if there is something better than this I'd like to hear it. I'm floored by the quality of the audio. Absolutely ridiculously good! The difference between Dolby 5.1 and 7.1 Tru HD is glaringly apparent. Love the unit thus far. I wonder what it will sound like when it's broken in and optimally calibrated!!
Told you!

The level of realism offered from the new codecs of Blu-ray are insane on a good system! Hell they even sound better on a mid-grade system!
So what is your speakers and Sub?
I had the original Casablanca from way back. One reason I chose it was for the upgrade capability, but I moved on as the upgrades cost more than what I originally paid for it. However, looking at your other components, you are obviously not afraid to invest substantially in you system. If you have the money, I would go for the upgrade. If you are looking for other processors in the $7K range I would audition the latest ones from Cary, McIntosh and Levinson and compare them to your Casablanca.
I don't believe you. Can I come over and see for myself? Got scotch!