Currently using Philips HTS3366/98. This system has been serving my purpose, DTS Surround.

unfortunately, it has only one HDMI in.

I am thinking of getting Pioneer HTP-519SW that comes with 2 HDMI in and 1 out. Now the question is, does that mean if i plug my PS3 and DVD into the system via HDMI and output to my LCD via HDMI out, i will get digital audio and HD video?

I am also looking at Pioneer TODOROKI HTP-RS70. Is this recommended as a home theater system?

519 is just a pass thru. It doesnt do any decoding.

not accurate.
it doesn't do any upconversion. meaning no conversion from component or RCA to HDMI. but HDMI in will be carried out to HDMI out.
so answering TS question, yes he'll get HD video from the HDMI out if he plugs the DVD and PS3 to the HDMI in.

todoroki design is somewhat unconventional. sounds more tailored for movies than music. the floorstander in HTP519/819 are more suitable for music (compared to todoroki). sounds better to me than todoroki so i went with it. might not be your cup of tea though.

and owh, there's a model in todoroki line where the speaker has a 6.5" passive radiator and a 6.5" speaker driver. the SMS800 (comes with the HTP519/819) comes with 2 X 6.5" driver.

paskal explain it nicely i think
rs70 avr is a higher model than the 519 avr
bt which ever package u choose
u would b satisfied wit the sound
bt if u wanna b future proof abit
its btr to take the rs70 package
it supports dts hd n dolby hd
whereas 519 doesnt supports it

im a user of the 519 package
cuz tat time rs70 no more stock
i brought it around half a yr ago
n im gonna change the avr to 919 soon