Kittu,
I was in the same boat as you are and after a lot of thinking, I added a 2ch power amp (and decent interconnect) to my Yamaha AVR.
Now the mid/high tones sound more liquid, way cleaner and less sibilant. Before the tones were sort of smeared together, now they are separate and distinct.
Even bass has much better slam and for the fist time I can hear minute bass textures.
As a pleasant surprise, system now responds much better to EQ (yeah, I use EQ)
Not trying to exaggerate, but the difference is like day and night. You should give it a try...
EDIT: And don't use YPAO. Even if you use it, before starting calibration choose 'FLAT' instead of 'NATURAL'.
May I know what power amp you added to yamaha?
