What's a good replacement for my H/K 635?

Why confused ? If you like the sound of HK receivers,stick with what you like. Just get one with preouts and hdmi and your good to go. Is that so hard ?

Just as a side note, for those wanting to use analog outs for bluray. If you do, you must have all 5.1 speakers. In otherwords, if you run without a sub,using the analog outs, that info is lost. Your system doesn't have a center, that info is lost running analog. Receivers only route signals in the digital domain, not analog. If you had hdmi and no center channel, the receiver routes that signal to the fronts, but if hooked up by analog,you lost that info. Just make sure you have all 5.1 speakers when hooking up by analog and you'll be good to go.

Power isn't an issue between brands in the same price line. Give or take a few watts, won't make a lick of difference. Pioneer makes good receivers, just get one with preouts and hdmi, and move forward. The 1120 is a good place to start but I would opt for the elite line or SC versions. Even used, they can be had within reason. Your worried about splitting hairs here, audio is about trying new stuff to get the sound you like. If you don't like a piece, sell it. I personally picked up a Pioneer elite 21 receiver here at club polk, hdmi, preouts, 3 hundies in like new condition. Think I could resell that for what I paid if I didn't like it ? I think by your description, Pioneer would suit you well. Take the plunge and move forward.