After 10 years running all AV sources to the TV then out to AV-2 (3.1) I am convinced that 5.1.x is now worth a new look (and not intolerable faff) in the Atmos era with Height speakers.
I am demoing a new Sony STR-AZ7000ES receiver and find it is a revelation in ease of setup and results, especially with the Sony SA-RS5 wireless rechargeable surround speakers on stands. I tested the bigger Sony SA-SW5 wireless sub and found other sub specialists (MK, JL) well worth the extra effort and reasonable cost step-up.
In addition to the logistical benefits of locating all sources closer to the AVR instead of the TV, due to (finally mostly-stable) HDMI, the audio and video processing options are greater, and the results at the TV display are better, to my surprise.
The Sony 360 gimmick is actually interesting and worth using.
For those in this space, I home-demoed the McIntosh MHT-300, and considered excellent Anthem AVP and AVR options before arriving here. (Trinnov is off the menu, for me.)
I have used the smaller Sony str 1080 for about 5 years now. It has always proved faultless. Used with a REL sub and Neat Iota speakers it fills my bedroom cinema with good clear diction and a weighty thump when needed. Set up was quite simple and changeable.
Your choice is a real heavyweight.
If I want to bypass the Sony STR-AZ7000ES onboard amps for L, C, R, and use the NAP-V175, does inserting the AV-2 provide any benefit in the middle? Looking up if there is AV Bypass on the AV-2. I suspect not.
Might want to get a NAC-122, 152 or 202, maybe? Wouldn’t help the center channel, of course.
More common, I think, is to use the 175 for Center and Surround L and R, and e.g. a NAC/NAP system for front L and R. Still, the question of if the AV-2 serves a purpose remains.
My younger son-in-law set up his youngest daughter with my old AV2 and his old 175, and Naim DVD player. Very credible little set up and sounds very good driving a pair of Royd A7s (used to be my other daughter’s speakers).