Multiple multichannel analog sources are a long-standing problem. I suggested the BDP-83 because it will most likely cost the same or possibly $100 less than the Zektor 7.1 switch - factor in the price you could get for the used S550 and 777, and it would be even less out-of-pocket. Patch bays would cost a good bit less if it works for you, though.

Media servers offer a lot of convenience, if you can get it set up so that it is easy to access everything. CD's are easy enough to transfer. DVD's can be done, although there's more complexity to contend with. As far as I know, Blu-ray is still not an option. Disc space has gotten pretty cheap, but I'd lean toward some sort of RAID array to protect against the inevitable hardware failure (there's a lot of effort involved in ripping an entire music or movie library to hard drives). If you go the HTPC route - which offers more flexibility but also probably more cost and some user interface things to deal with - you can probably do Netflix without the Roku box.