Upgrade path for my home theater?
If you are happy with the sound your speakers are giving you but you are already concerned about being constrained by an optical cable, then I think a quality receiver is a better bet than anything else) Also HDMI 2.0 will support 4K at 60z so unless you need 4k at 120hz I think you'll be fine as almost any "new" receiver will support All the uncompressed audio formats. that being said You can find 5.1 receivers with an additional Subwoofer pre-out for less than $500.
Accessories4Less has YAMAHARX-V4A 5.2-Ch x 80 Watts 8K A/V Receiver for $399.99 USD.
I recommend new receiver using the ARC/EARC port on your TV for a few reasons.
1.) expandability. If you are not trying to spend a ton especially on a 5.1 receiver you are only going to get about 5-6 inputs on a receiver. (Which is usually plenty) but as you obtain more consoles, a gaming pc, UHD player, retro HDMI devices, etc etc etc you may find that you run out of space on your receiver's HDMI. eARC helps to make sure you are getting the highest quality audio back to your receiver.
2.) many newer receivers already trigger ALLM and VRR regardless of the input (unless your TV is special and has a dedicated "game" or low latency HDMI port.)
3.) after having worked with all my devices into ONE receiver I like having the OSD for each input so I can make sure I have the sound mode that I want selected, as well as verifying that all speakers are working, etc.
So yes, I think a good receiver is next. Then maybe get better speakers if you think you need them. Or invest in better stands if you don't have them?
a 2nd sub will also do wonders.
Alternatively invest in a 9.2 channel receiver. And use 4 of your current speakers for "Height" channels or atmos speakers. (Which is what I did)
Then get 5 new "beefier" speakers and a quality sub or two and you'd have a 9.2.4 Dolby Atmos immersive gaming/home theatre set up
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