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There are upscalers you could buy and just keep your 3805, although the cost of some of these scalers is more than some of the new receivers. Unless your TV is capable of 1080P there is no reason to move up to HDMI as the 720P/1080i signal is carried on component cables, which your 3805 has a single output to your TV.

Here is a thread(long) on the subject of 720 vs 1080.


Just to add a thought onto 1080P vs 720P....
I own a Samsung HLS5688 1080P television,& a Mitsubishi HD1000u 720P projector. The tv has a 8 foot viewing distance to a 56" screen, the projector a 12 foot viewing distance to a 96" screen. I have two 1080P sources, my PS3 via HDMI & my 360/hd-dvd combo via vga. To me its a toss up between either in terms of PQ. (to be fair i leave both the ps3 & 360 output at 1080P & let the projector downscale). As far as im concerned, the only thing HDMI does for me is free up my other component input for my wii. Oh & i have 20/15 vision.
I really wouldnt think of the hdmi as an upgrade, just an extra port to plug stuff into.