If I were going to do a 2 channel receiver, I'd probably do the new Onkyo TX-8270. It will do most of that as well, except XM radio, but you can stream xm from another device. New it's 499, but I'd expect a few to start showing up on accessories4less soon.
I wouldn't rule out an AVR from say accessories4less. You'll find one that does all that for near your budget and get some room correction to boot. I keep looking at integrateds, but the reality is if something happens to my AVR, I'll probably just get another one for my 2 channel rig.