Thanks for the suggestions!
My living room is currently about 13'x11'. Kinda tiny, and my neighbors won't necessarily enjoy my speakers, but my wife only wants to buy this once. Meaning that when we upgrade to a bigger apartment this year, and we're saving up for a house (we'll have enough in 2-3 years) I'll still be using this system. Hopefully for the next 10 or so years, preferably longer.
My idea was to extend my budget, but also buy over time so it's not a huge cost all at once. I was thinking buy an AVR now and splice my current speakers to use it, then replace my current satellites with the Energy Take 5.0 system, then get the Klipsch sub-12 (wife wants down firing for looks), then either inherit my late uncles towers (he had a several thousand $ setup, which my grandma doesn't know how to run) or buy polk audio tsi300 towers and move the Energy satellites to the side. After all that I'd end up with a 7.1 setup costing about $1300 (less if I can get my uncles old towers) but it would be over a couple months or years.
I'll look into those cheaper AVRs and the Pioneer speakers as well. But since my couch is against the wall, should I not get the bookshelf speakers and get mountable satellites for the surrounds?
And should I worry about those being refurbished, or is Denon good about that? I don't have any Apple products, I don't believe in supporting terrible company practices, so I don't need airplay, but is there any other benefit to having ethernet on the AVR?
Just a bit more info, the devices I need to connect are:
Next console, either PS4 or Xbox 720. These will have a blu ray drive so I can get rid of the blu ray for this.
It will be used for roughly 45% games, 20% TV shows, 20% music, and 15% movies.