Some people love all those cables behind their gear and others prefer the simple HDMI solution, but it really comes down to flexibility and which device (source or AVR) has the best electronics. For instance, I have the model 990 which doesn't support all the new audio codecs but can be fed from my OPPO BDP through the 7.1 analog inputs so it can function in a home theater pretty well with the OPPO doing the decoding. In my current system I use HDMI for simplicity and the processor has better DACs than the OPPO.
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Music system
Model 990/7500/Magnepan 1.6 QRs/Technics SL1200 MK2/Aperion S-12 Subwoofer/OWA3/Sony NS75H DVD
APC H15 Power Conditioner

TV System
Large Advent Loudspeakers/ Polk center/Monoprice surrounds/Panasonic Viera 42 inch/Onkyo HT-RC260/Sony BDP S590/Directv


Home Theater System
Onkyo PR-SC886/Outlaw 7125 Klipsch RF-82 L/R,RC-62 center, RB-35 SR/SL, BENQ HT1075, Outlaw LFM1-EX/OPPO BDP-83/Directv
Harmony ONE
Blue Jeans and Monoprice interconnects
APC H15 Power Conditioner