You'd be better off replacing the Denon system as it won't be able to accept the HD audio soundtracks present on Blu-Ray discs. Whether that's with a separate system (which could include the Panasonic BD60) or through an all-in-one system like the SC-BT200 is up to you. The advantage of the separates system is you can upgrade in stages in future rather than having to replace the whole thing like you are now better off doing with your Denon. It will also give you more flexibility with connecting other sources e.g. if you got a PS3 or Sky HD, with the SC-BT200, you could not take advantage of inputting via the HDMI socket and letting the amplifier do the switching, whereas an appropriate separate AV amplifier would allow you to do that.