Hi OP,
I'm not sure what your trying to accomplish. It sounds like you just want to update your surround system while you watch TV. A new AVR would probably have better room correction with the addition of Dolby Atmos. Atmos will require more speakers. How much two channel music do you listen to?
If you just want better surround for TV with no Atmos, I think I would use your budget to replace your front two or three speakers. Move your L/R to the sides and create a 7.1 or use them to upgrade your rears. A lot depends on the size of your room and 5.1 might be plenty. A couple of subs are nice, too, but your neighbors might disagree. Go used if you can find the right deal. Hope some of this helps.
I'm not sure what your trying to accomplish. It sounds like you just want to update your surround system while you watch TV. A new AVR would probably have better room correction with the addition of Dolby Atmos. Atmos will require more speakers. How much two channel music do you listen to?
If you just want better surround for TV with no Atmos, I think I would use your budget to replace your front two or three speakers. Move your L/R to the sides and create a 7.1 or use them to upgrade your rears. A lot depends on the size of your room and 5.1 might be plenty. A couple of subs are nice, too, but your neighbors might disagree. Go used if you can find the right deal. Hope some of this helps.