AVRs (entry to mid level) have very poor quality pre-outs. I would recommend an integrated any day than an AVR+ power amp in the same price point. Ofcourse, there could be exceptions.
Hi Santy,
Yes. I think your point is valid if one is buying everything from scratch. I only mentioned this option as OP already has a Marantz AVR. Within OP's budget, he can get, for example, a fairly good power amp for 50k, but I think he will be hard pressed to find a quality integrated for 50k. He will have to spend the entire budget to get something like Yamaha AS-2000 - or a similar integrated that can drive most speakers.
I just find the careful pairing of amps and speakers a big mental hassle. An amp is an amp is an amp. It's main purpose is to drive speakers with authority and provide clean, undistorted, channel separated amplified sound. I feel that this pairing game only works because amps are underpowered and/or certain speakers are more demanding than others (impedance dips and phase changes). If you have an amp with say, 150-200 watts of power and with enough capacitance, most of these issues are taken away from the equation. But to get a decent integrated amp with these specs really skyrockets your budget. Hence, my power amp suggestion.
Again, just my two cents. I myself switched over to a 80 watt integrated (from a more powerful but lesser quality amp) recently in pursuit of better quality sound

Edit: Another thing: I personally feel that AVRs let themselves down because of their power amp section, not (as much) because of their preamp section. Sure, a dedicated DAC and PC source will beat an AVR, but at what budget? With a budget of 1.5L for an entire system, and with an existing AVR, I still feel that the biggest bang for the buck will be to get quality amplification first. The AVR will still let OP use its networking/streaming features etc. And AVRs actually handle low bitrate formats quite well.
I know most people would disagree with me, but I feel that a purist approach is well and good, but only when budget is not a factor at all. Unfortunately, most of us are budget constrained, and a purist approach can actually result in a sub-optimal system - with only the promise of an ephemeral future when all components have been upgraded to the required levels.
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