Lot of questions, will try to address one by one - bcoz of lockdown, i have lot of time on hand
Physical connection of speakers to AVR is same, irrespective of whatever mode 3.1.2 or 5.1. Its only when you do the initial setup i.e. config on the AVR you have 2 options either set it up in 3.1.2 or 5.1 mode. I was suggesting you to in this fashion (Height CH), setup in 3.1.2 if you have Dolby Atmos source i.e. from TV or blu-ray. else setup in 5.1 mode (Surround CH). But physical install of Speaker will be good if you do it as shown below, so that its easy for you to just change setting on AVR.
Looks at the manual for more details -
https://intl.pioneer-audiovisual.com/manuals/docs/SN29403619A_HTP-076_En_190425_web.pdf
View attachment 47510
Frankly speaking don't waste your money on Sony (X8500), just save for some more months & go for better setup with proper components. IMHO Soundbars should be opted, if you have serious space constraints or your ok to comprise the immersive experience. Please note, i'm not saying all the Soundbars are bad. Again its personal preference & the question is - does it really satisfy your need? I myself use Yamaha YAS-109 Soundbar (DTS-X) for movies. I find it very optimal for my viewing space & personal preference. I have decided to setup proper 5.1.2 once i move into perfect space which will do justice to the money spent
Better to invest in TV with Dolby Vision/ATMOS and HDR features, its one time spend for next 5-7yrs. OTT platforms like Netflix, Prime etc will have more ATMOS contents & Disney+Hotstar will surly join the bandwagon in near future.
Again its very personal choice,
- if your thinking of one time setup for next 5-7yrs, then i would suggest go with ATMOS enables devices to get most out of it in long run.
- if you think - i don't really care of ATMOS/DTS-X, just need 5.1 setup then go with basic 5.1 AVR + satellite speakers (as your budget is 50k).
- if your planning to build gradually, then its a complete different story & you should take baby steps only investing on AVR + Front speakers for now. Keep adding other equipments based on other factors.
End of the day, we can only suggest / recommend, you'r the right person who need to take the call based on your requirement & person preference.
Hope i was able to summarise it, feel free to PM me if you need any inputs/suggestions.
Cheers,