Help choosing receiver for Jamo S426HCS3

I recently bought a Jamo S426HCS3 5.0 set and am looking for a matching/capable receiver. I was initially looking at Onkyo 608, Pioneer 1020k, and Denon 790 but then realized that Denon 791 is much closer to the other two, feature wise. Further research showed that Onkyo RC260 is ALMOST the same as 608, and I decided not to spend an extra 90 dollars for THX certification and Sirius radio compatibility.

Now, RC260 is 280/-, 1020k is 360/- and AVR 791 is 460/-. Is the 1020k worth 80/- more than the 260? And is 791 worth 100/- more than the 1020k? In fact, for 460/-, I might as well spend a little more to get a 1120k and get network capabilities and superior video processing. Do Yamahas come into picture at all? (in this price range. I'm still trying not to spend much more than 400/-)

That said, I'm a little worried about the power output of 1020k. Is it powerful enough to drive a 5.0 system with 6-ohm speakers? How loud can I go and still keep everything safe?
Lack of ARC and standby passthrough are other negatives of the 1020k. Are these silly enough to ignore? Can they be worked around by any simple mods?

I've read about some video processing issues of Onkyo 608 and assume they're the same with RC260 as well. Lack of ipod/usb connectivity is another minor negative.

Is there anything majorly different in the sound produced by any of these receivers?

All in all, how do these compare against each other and does any one beat the others hands down, especially when paired with the mentioned Jamo set? And, are there any others in this price range that do much better and offer more features?

Thanks much!

PS: My usage would be roughly 50% music/ 40% movies/ 10% gaming. Room size - about 16' x 13' with one end opening into kitchen.

I do enjoy my sound but I'm not an audiophile by any means and don't plan on adding additional amps etc.

EDIT: Features looking for:
SHOULD HAVE:
Very good sound quality
Ability to use with 2.0 2.1 5.0 5.1 setups
Works with 6ohm speakers
Front hdmi
At least 4 hdmi and 1 composite inputs
3d compatible
Dynamic volume (maintain same level volume across sudden volume changes like action scenes/ commercials etc.)
Radio
Good video upscaling/deinterlacing from both hdmi/analog sources

NICE TO HAVE:
Standby passthrough (or a workaround)
Good on screen display
USB support (iphone/ flash drive)

STRETCH:
ARC
Pandora
DLNA

Thanks for the response. Any reason why it is better than the other two?

Nope, didn't even know about the packages there until you told me. After spending lots of time researching, I stretched my budget by 100/- and got the 1120k. Hopefully it'll do everything I need and I don't need to get into this research for a long long time.

Good luck with your purchase!