Does This Make Any Sense?

A pre/pro or preamp which are basically the same thing. You could also get a receiver with pre-outs to handle this as well, although this doesn't sound like what you are looking for.

Some listed here

You're describing separates, where you have a preamp/processor that feeds into a separate power amp.

Separates might make sense if you have $30K+ worth of speakers. Since you're here asking this question I'm not sure you need a high end pre/pro and amp. Perhaps you should upgrade to a quality receiver.

If you tell us what it is you don't like about your device, we might be able to help you out.

And you think processors are less prone to quirks?

IMO, HDMI creates a lot of the quirks I have read about. The others seem to have resulted from the complexity of the modern AVR/processor. Once complexity goes past a certain point, perfection or even near perfection seems hard to obtain.

For example, my Tivo is one of the slickest CE devices I have ever seen. But HD show listings don't always show up - the exact same SD show does. This makes it hard to record events like the PGA Championship in HD.

Some receivers seem quite stable. I am quite happy with my Yamaha RX-V3900. It's only failing, assuming it's Yamaha's problem, is that Tivo's resolution resets on negotiation when it's connected through the 3900. There's a number of workarounds to this problem, though - or I can just live with 1080i output

If possible, could you elaborate on some of the debilitating bugs that hinder fundamental functionality?

I've been using an Onkyo 605 for over a year without any problems, and just today purchased its replacement after extensive research (Onkyo 707).

Like the previous poster pointed out, a lot of quirks can be attributed to HDMI/handshaking type issues. Half of the problem is user error, and the other half is HDMI's implementation itself.

The only problem I've experienced on a modern receiver was overheating/video distortion on a friend's Sony DG810. A fan has since been installed and the problems are gone. Perhaps the solution is to stay away from Sony receivers, which is never a bad idea.