I have a 2.2 system for TV and movies. I connect all of my HDMI devices to my TV and use the optical output of it to feed signal to a miniDSP DDRC-24. This is the 2x4 HD with Dirac Live upgrade. It acts as my DAC, preamp, and room correction. I use the TV to delay the video so that it syncs up with the audio. Two channels of the DDRC-24 go to my two subs and the other two go to a Yamaha P3500S amp that I got for $250.
I like this setup more than an AVR because I get great performance in the areas that matter to me without all the extra features I wouldn't use. Yes the low end miniDSP products like the 2x4 HD are sub par as far as DAC performance goes but in real world use I can't tell. The DAC performance probably isn't much worse than a standard AVR anyhow. What's more important to me is the quality of room correction and the amount of power available for loud Movie watching sessions. Instead of the limited, lackluster room correction that typically comes with affordable AVR's, the 2x4 HD has all of the DSP capabilities needed to properly integrate subwoofers into a system. You just have to know what you're doing. Add Dirac with the DDRC-24 and you have a killer automated room correction system. The Yamaha P3500S amplifier has much more power than a typical AVR would and has been measured
here.
Some downsides are that it is complicated and takes more time to set up. Also you don't get a physical volume control or display with the miniDSP 2x4 HD. I never used the volume knob on my AVR so that part doesn't bother me. Having to hook up my laptop with a long USB cable to change settings is annoying though. Also not the most attractive setup but I don't care for AVR aesthetics either.