Add Proceed AVP to Rotel RSP-1069?


I am a fan of Proceed gear. I might have a little upgrade-itis. I see how low the AVP's are going for and I'm thinking about adding one to my system.

Current System:
4 sources (apple tv, ps3, comcast cable, marantz dvd) - via HDMI
Rotel RSP-1069
Proceed AMP-3 (for rears and center)
Proceed PRE (for fronts via SSP pass-through)
Proceed AMP-2 (for fronts)
I also have a Proceed CDD with Proceed PDP going direct to the PRE for 2-channel listening.

Proposed change:
Replace PRE and PDP with an AVP.
For 2-channel listening, I think this is a no brainer - better preamp, better D/A than what I have currently.

The unknown thing is incorporation of the 1069 and the AVP. I see two choices:
1) run the digital out from the 1069 into the AVP
2) where I can, run the digital out from the sources direct to the AVP. I say where I can as the AVP only has 1 optical input and three of my sources only have optical output.

Selling the PRE and PDP should be a wash for the cost of the AVP more or less.

The biggest sticking point I see is the BluRay HD Audio formats. At present, I have the PS3 doing the decode and sending it down HDMI.

I posted another thread to the digital forum to address the virtues of the PDP vs AVP, so if any of this seem familiar, that is why. My biggest concern is how this would work for home theater. I have a Logitech remote to make this all family friendly.

Speakers: B&W 803S, B&W HTM4S, B&W M1, no sub

Any input is appreciated. Thank you.
timjclark