I was in a similar quandary. Having an Arcam AVR350 and Arcam DV139 which have - and continue to - provide exemplary service for DVD, DVD-A and SACD, I could see no merit in an expensive upgrade of all components which may, or may not, provide a better experience.
Why not get a 2nd hand ‘quality’ blu-ray that decodes the HD sound formats on board (I purchased a Sony BDP S5000se for £300) and link both players to the multichannel inputs by using 3 RCA switch boxes? I used this:
http://www.audiovisualonline.co.uk/product/1514/rca-phono-audio-switching-unit-3-way used with a cheapish range of RCA interconnects (more expensive cable options are available!) It does add to the cable snake pit, but after a bit of trimming of the speaker settings I have been really pleased with the solution. I’m sure an eventual upgrade will happen when the Arcam gear gives up, but given the issues with many new products, I’m happy to stick with something that works and is proven in the context in which I’m using it.
Just a thought.