Going back to basics

@mtj - I have also dome something similar for my own A/V system.

I purchased a Bluesound Powernode 2 which works for me..

I have an Apple TV + a TV streaming box with PVR capability.
- Both these boxes feed into the Smart TV via HDMI cables.
- I take an optical feed from the TV OUT into the PowerNode2
- I have a sub connected via the Sub-out on the Power Node 2
- The speakers are nicely driven by the 50 watt/channel amp inside the PowerNode2
- I have a pair of Tannoy Fusion 4 floor standing speaker

There is an analogue input on the PowerNode2 but that is one of those dual-use inputs that doubles as an optical input whidh I use for the optical link from the TV.

Not strictly "surround" but I am continually surprised by sounds that appear to come from the side and rear and the sub provides all of the LFE’s for those earth shattering moments.

The Node 2, has all the same inputs/outputs/capabilities, just witout the power amps,  so you could hook that up to your existing amp to drive the speakers

My other speakers are now deployed as a second, less used, A/V system in the basement.

Hope that helps - Steve

I am done with TV so no video connection here just pure stereo 

Hehehe .....   and I thought going back to basics meant a good pair of speakers, stereo intergrated amp and turntable. You say “tomato”, I say “potato”....

I also use a 2-channel (or 2.1) system for video. I think your approach, selling the center and surround speakers and processor, would be a good way to go. I would keep the amp for now as you are satisfied with it. Can always change that out if desired. 

The Node2i mentioned by williewonka certainly has the features you are looking for and with your budget you could use it with better DAC. I believe there are other preamp/DAC/streamers that could be considered. That option I will have to leave to others, as I will be in the market, however haven't as of yet explored the market, outside of this forum.