Upgrade path question with $2k to spend

OP,

You have to be a little careful using watts per channel. A good audio amp with high current could provide a much better drive and sound better with much less wpc. Indirectly the current is indicated by the wpc delivered into various impedance. A great amp with high current will double the watts per channel from 16 to 8 to 4 ohms. So, perhaps 100, 200, and 400Wpc. High end audio stuff will have much higher performance for the specifications, the noice floor will be much lower… which will be satisfying at a much lower value. Surround processors put out a lot of noise and require cranking up to sound good.

To cover all the facets of getting where you want to go I recommend getting a copy of Robert Harley’s book The Complete Guide to High End Audio. You have a sense of where you want to go, and getting there on a small budget is definitely possible. But it will require very carefully chosen components. I highly recommend used ones made for high end audio.

OP,

Surround processors are crammed with all sorts of functions. In home theater you have video distracting you from the audio. Audio only systems do that well. If you want good audio you need to get audio only stuff.

Take this into consideration, the very best audio amps are two boxes… one for left channel one for right. The very best preamps are two box solutions, one for the power supply and one for the preamp functions. The best preamps are a single or double box. Separating each function permits isolation of the circuits and power supply. cramming this stuff and many amps in a bag is not going to sound good. I have a home theater system worth around $50K… it is not remotely competitive in sound quality with my audio system.
 

This is hard. I would immediately look to a phono stage… $2K will get you a much better one. The Phonostage is far up in the signal chain… But, first thing has to be the Yamaha. Surround processors sound terrible for two channel audio. I would trade it in and apply all your cash. I would buy a used integrated Luxman or NAD (only preamp and amp)… reach as high as possible. If you can actually get a used audiphile piece it will raise the performance level so much, it will allow you many years to get a better phono stage… which will then make a huge difference. Then TT and cartridge.