2 channel + HT suggestions

I have been living with a hybrid 5.1/2.0 system for a few years though the 5.1 part of it has changed a great deal.  I tried going all-separates and it was a real hot mess. I just replaced my processor along with three outboard monoblocks and a separate DSP unit with 1 Anthem MRX 540.  That feeds my Luxman integrated which is what I use for 2.0 channel listening.  Really very happy with the final results and the loss of clutter.

I would strongly recommend you get a new HT receiver like an Anthem MRX to replace both of the Krell units and then get a stereo amplifier for the 2.0 part of the system.  If you can do an integrated even better, just based on wiring and system complexity. 

I have a combined 2 channel / 7.5 HT setup.  The two channel system consists of a nice pair of monoblocks for my main speakers, and a preamp with HTBP.  The center and surrounds are powered by a 5 channel amp and I use a Marantz HT processor.  Your center channel is the most important channel for home theater, that's where most of the dialogue comes from.  Getting a better amp for 2 channel is a good idea.  Are you only running three channels for HT?  If so, consider a monoblock for the center.  If you have surround speakers, the Krell is probably fine.  

Thanks, everyone. Appreciate the suggestions and insight. I think I have a plan. If I go with an integrated, like a pass labs, is the BHK Preamp no longer needed? 

If the integrated you're considering has HTBP and all the connections you need, it includes a preamp, so your PS Audio preamp should not be needed.