Puppethead,
I'm kind of curious if the audio store is leaning towards the "what can you do for me now" approach? I’m thinking (from the audio store perspective) that right now, a receiver is an upgrade for you. You should be just fine.
People new to the Home Theater world feel intimidated (cost/too many cables/setup/etc.) going to separates.
I ask this because very few receivers - really- can match the combo of 990/7125. Key word is ‘match’.

Any-way ... it is all up to you. I'm w/ AVfan, Gonk and others who have answered this very question, in a couple of earlier threads.
The answer is if your can go separate – do it. And get the most power you can afford.
Is 125 watts to much power? No. Never. Not.

Another way to look at it…… Where do you want your audio system to be in 5 years?
Personally – I went from a Denon receiver to separates and as stated by AvFan, Just my .02 cents.