I'm a Denon guy. Have owned Denon receivers for
years and I really love them.
That being said, over the past year, Denon has scared
me. There have been many complaints of their network
cards failing. I went over to Amazon to read reviews of
the AVR 1612 and there seems to be a rash of failing units.
Click here to read them
I don't know what to recommend. You can go for the
Denon, or, if you find an Onkyo unit in the same price range
those are good as well.
Hooking the new receivers up is actually easier than what
you have now. Instead of connecting several audio and
video cables from your Blu-ray player to the receiver, you
use just one HDMI cable that carries both signals.
Be very careful of salesmen that try to sell you a single
HDMI cable for $20-$60. You need only spend $10-$20 on
a high-speed HDMI cable.
You will need 2 HDMI cables. One is for Blu-ray to
receiver. The other is receiver to your display. You
will control all the switching with your receiver.
As for the Sony Blu-ray player you mentioned....
Seems fine. Well rated on Amazon. I don't
think you can go wrong with that.