Where to upgrade an older system...?

I have an old system that I would like to upgrade but don't know where to focus. The setup I have consists of the following:
Copland CDA289 CD player
Tag Mclaren AV32r sl home cinema processor
Primare A30.5 power amp
Toshiba SD9000 DVD player
B&W Nautilus 805 front speakers
B&W Nautilus HTM2 centre speaker
B&W Nautilus SCM1 rear speakers
B&W ASW1000 subwoofer
LG PK990 television
As you can tell, the television has been upgraded recently, the rest has not. I would like to upgrade to Bluray, in large part to take advantage of the picture quality on the television.

Here's my problem: I don't want to have a very large number of components, would like to take advantage of HDMI, but don't want to do so purely for the sake of doing it. Is there a Bluray player on the market that will play CDs at a quality level where there will be not much (if any) drop-off in quality from the Copland CD player so that I can replace both the DVD player AND the CD player? I'd like to reduce the number of boxes that I have if possible but do not want to sacrifice hugely on audio quality for CDs given how much I spent on the kit in the first place.

The Tag Mclaren does not have HDMI input or output, while the TV does not have s-video input. Should I then route the bluray to both the TV (via HDMI) and the Tag Mclaren (via digital coaxial)? That has downsides in terms of not displaying any of the Tag Mclaren output on the TV screen but for configuration, I could at least use component video to connect.

Alternatively, is there a better way that I should be thinking about all of this?