Well, after spending some time evaluating my system and how stupidly a few things are connected (Apple TV having to go HDMI to the TV then to the 3490 via analog cables), XBox 360 using the elcrapo A/V cable to get audio to the receiver and other assorted hook ups. I've come to the conclusion, I need more inputs.
Ideally, I want something with a TON of inputs on the rear end, looking up things like the Pioneer SC-1227-K ($600) or a lower end Marantz AVR (NR-1403 $450), internal amplification really doesn't matter much as there is a required FRONT pre-out. Retaining the Parasound amp is paramount and non-negotiable.
Will I ever use the built in auto set-up ? Nope. Does having access to several soundfield options matter ? Nah. Do things like simple bass/treble controls matter ? A qualified yes.
I may sound like a nutjob and yeah I resemble that statement with the idea of using an AVR a head unit for a 2 channel system. So if any of you folks have ideas go ahead, spit em out. And feel free to call me a nutjob :) Remember, I ain't rich by any means.