Linkage, (also posted in the 7125 thread)
I, too, had a Denon 3300 as my center piece. I knew i wanted to upgrade to separates. I had heard Outlaw from family members and I was impressed. After some serious research/listening - i jumped right in.
..... The result .... I found i had been missing music and movie sound information and the presentation of it. I have been going thru the entire collection (movies/music) and listen like it was the first time. I like to listen to classical, jazz, house, R&B and movies. (50%/50%)
I have not personally test driven the 970. My understanding is the 990 is a little more satisfying w/ music. There are threads around here answering that vary question.

Would i want to go back and use the 3300 as a pre... NO. Sorry... No WAY! The 990 has much better presentation in stereo and movies. The 990 has better bass management and much more...
As for the 7125, it will do more than just fine. Especially since there is a sub involved, the amp will have fun and plenty of headroom to play w/. You will hear better definition, presentation, and on and on... The 990 and 7125 are neutral sounding equipment – really.

I do not have any first hand experience w/ the LM2. Other gunslingers will have to jump in and give their thoughts.

Running the picture straight from the DVD to the LCD is a personal choice. There is nothing but confusion w/ HDMI. Sure it works with the picture but the sound side is a mess.

Overall, your upgrades sound very reasonable.

Welcome to the Saloon. Have fun on the upgrade journey and keep us updated. Don’t hesitate if there are other questions. This forum has many knowledgeable members.....