I am helping a friend of mine get into the 21st century (she just bought her first HDTV a couple of months ago!) and she needed to replace her old Kenwood AV receiver (composite switching only) with something she could use to watch movies from her DVD/VCR combo as well as her U-verse (HDMI, composite, or component). Her Ex got involved with the process of getting the HDTV which meant she missed on getting the Toshiba with 3 HDMI and multiple component / composite inputs (with analog audio out) and had to settle for the less-capable LG set for the same price. She could have waited on replacing the receiver but it's a hassle with the three or four remotes, and I had to create a cheat-sheet with all the different scenarios so she could watch TV.
Most AVR units in her price range (under $300) do not upconvert from 480i to 1080i/p, but I found the Denon AVR-E400 on sale for $349. It does the conversion between the lower resolutions so all she needs is a single HDMI cable to her TV. It also includes Internet radio, Pandora, Spotify, things she doesn't "need" but I think that once she experiences the ability to pull in music from anywhere in the world she might be hooked.
The AVR-E400 has 5 HDMI assignable inputs on the back, one on the front, a USB on the front for music player, one component input, two composite inputs, two assignable digital audio inputs (coax & TOSlink) and directly supports AirPlay. If you browse to the device's IP Address, it allows you to control and configure the receiver through your PC. Apps are also available from the Google and Apple App Stores. I'm really impressed with everything this receiver can do for under $350!
The negatives are: no analog video output, just the one HDMI output. Also, it supports CEC control over HDMI, but I've been playing with this setup and I've noticed that sometimes the receiver sends audio to the TV instead of playing it directly. That could be because my old 2007-era Toshiba HDTV doesn't fully support CEC and ARC. If I turn the TV on first, then the receiver, it seems to work, but turning on the receiver also causes the TV to turn on a few seconds later. If I turn the TV off, it shuts off the receiver, even if I'm listening to the radio! Hopefully, the LG 39LN5300 has full ARC support.
After playing with this for a week, I'm thinking about getting one for myself to replace the Yamaha I'm using now for my HT setup.