That Parasound separates setup should sound better than a Denon 2802. If you really want the best sound possible for both 5.1 and 2 (2.1) why not buy separates such as the Rotel gear I use. You'll get the 5.1 you want, but won't suffer any quality degradation when you listen to 2 (2.1)

Where do you live? You're more than welcome to come by my place and hear my M60's through my Rotel gear. If you want, you can even bring your Denon and we could listen to both.