I would recommend looking into the separates route given the 1 HDMI input on your TV and, from what I gather, quality sound is important. There are a number of AV receivers on the market that can take multiple HDMI inputs and have HDMI outputs to send to your TV. The right receiver will also handle HD audio, video upscaling for devices that need it, etc. Onkyo, Sony and Denon are all pretty highly recommended by What Hi-Fi these days.

As always with electronics, your budget will determine your best options.