Ah, I see. I'd give it a go and see. From my albeit very limited testing so far with a PS3 and an Onkyo 905, the Onkyo was a tiny bit sharper. However, given you have to keep changing the output of the PS3 between 576 and 1080 when switching between DVD and Blu-Ray, I don't think I can be bothered unless it's a very special DVD!
On Freeview, depends what outputs you have on your Freeview box. Mine is RGB Scart which won't go into the Onkyo, so I tried S-Video into the Onkyo to upscale it and the native RGB Scart picture direct into the TV was still better.