Take a look at the Sony HT-7200DH. For $500 it's a 5.1 system built around a real AV receiver and can process the multichannel PCM from your PS3. It does include a separate DVD player, but you don't have to use it obviously. You could always try to sell it on ebay.
The receiver that comes with the HT-7200DH isn't really a decent stand alone receiver... it looks like a receiver, but it doesn't have amplifiers or components of a dedicated receiver.... don't let the wattages fool you.. its rated at 900-watts (140W x 5 + 200W Subwoofer at 1KHz,<10% THD), but the Sony STR-DG720 is rated at 7.1 Channel Power Rating: 105W x 7 Amp Power (8 ohms, THD 1.0%) .... there is so much distortion and probably its rating at 'max' power and not continuous power for hte HT-7200DH, while the STR-DG720 has lower distortion and probably closer to the real continuous power.....
So, do they not sale the receiver that comes with the HT-7200DH seperately? ... I thought it was a STRDG720, I was considering the receiver from all the good discussions of the 7200 I heard. LPCM through HDMI does sound like a win/win solution for PS3 owners.
Also, nice setup chironerd21.. I'll contemplate stealing it later.
Also... I don't trust these speakers.... they are just speakers from a HTIB set... if you read on Onkyo's HTIB sets... everyone will say these speakers just don't cut it.... So i rather go with something else..