What's the difference between Component processor and AVR receiver?

What @soix said.  I use a now discontinued Onkyo TX-RZ820 receiver as a surround processor.  I don’t use any of the built-in amplifiers.  It works well for me.  I'm only using it for home theatre.  It's not in the chain when I'm doing two channel.

I’ve looked at surround processors and ultimately didn’t think they were worth the extra cash.  I’m primarily a two channel guy and not a home theatre buff. 

You can  upgrade hardware on a pre/pro  

You can't with an AVR 

So your pre/pro will always be up to date in the futur'

To follow the trend with an AVR ; you will have to sell the one you own and buy a  new one ;  on and on .

Sorry to hear about your amp. About 17-18 years ago I wanted a surround system. I purchased a Yamaha RX-V1500 and the first generation Sony Blue Ray player. I chose JBL 4312’s for front main and Klipsch Heresy II’s for rears. I used a Klipsch RC center and sub to complete my rig. The Yamaha was the early addition that did not have hdmi. I eventually switched out the Sony for an Oppo dvd player. The Yamaha was versatile enough to meet my needs and with the processor it had did a pretty good job of syncing the speakers. The sub woofer outputs were acceptable and the tone controls worked well. When you switched it to 2 channel stereo if gave a loud click internally and gave more power to my power hungry JBL’s in stereo mode. Where you’ll have an issue with the likes of receivers like the Yamaha and the others you mention above is NONE ARE HIGH CURRENT design. They can only drive moderate speakers. The Emotivas and higher level brands offer Hi-Fi quality that surpasses the consumer goods that you get at Best Buy and the other discount stores. If you were happy before try another receiver of this type. I ran into issues trying to drive a power hungry impedance dropping speaker to 100 db and this resulted in clipping. Also if you go with a consumer receiver see if it has pre outs for the front mains and you can add a class D stereo or a pair of mono amps. Also back when I built my system I was strapped financially and purchased my Yamaha and Klipsch center and sub gray market.  The JBL’s and Heresys I purchased used. I hope my ramble was of some benefit and Happy Listening, Mike B. 

Hello @mcklinjw  In my experience, separate amplifiers in a home theatre set up will always sound better than an AVR.  Mine was a 5 channel Parasound that was a beast.  That being said, a separate Pre / Processor will also sound better in that it does not have heat generating amps inside that hog cooling and space. An AVR is trying to do it all.  2 channel sound from separates will sound better as well, much better. Amps tend to last a long time, while the software of processors is always evolving.  Separate Pre / Pro's are more expensive, as said above, because they are of higher quality.  My parallel but different history to yours is that I became jaded with Denon and felt better with Marantz.  I think all AVR's have a high tendency to fail.

The DSP/processing technology is generally shared among the same line of products (i.e. all Marantz AVR receivers and AV processors will generally have the exact same DSP/firmware and possibly the same DSP boards).

However, the processors will be better because of these reasons:

1. Processors have significantly better power supplies for all DAC and analog sections (the basically equates to sound quality).

2. Processors will generally have balanced XLR outputs (this can be a big jump in sound quality as the XLR analog output boards can sometimes have a lot put into them).

In an AVR receiver, the DAC/analog power supplies are typically compromised or reduced (sometimes even chained off the main amp power supply).  The XLR boards are removed in place of the amplifier boards and speaker connections.

I believe the DSP logic is the same between Denon and Marantz (they are both owned by Harmon and use the same DSP engineering team).   The DSP boards may even be similar.   However the DAC and analog audio boards are completely different between Denon/Marantz (the two products are voiced completely differently).   Yamaha is a completely separate company and do not share anything with Denon/Marantz.

Some manufacturers may use the same chassis/case for both their AV receivers and processors.   Anthem and Arcam are two examples.  The Arcam may preserve the high end analog power supplies, but lose the XLR output boards (the Arcam processors are basically half-empty inside).   I’m not sure on the Anthem because pictures do not show the bottom power supply boards on the receivers.