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There is very little difference between the two if your planning to use outboard amps. The 805 was a much better receiver but Onkyo skimped on the Power supply and amp section in the 806 so going with the 706 is by far the best bang for buck.
 

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Look around for a 705 even a used one will be better than the 706. The 705 has all the features a man could want.
How do you figure that the 705 is better than the 706? they are almost identical and the 706 has THX® Loudness Plus™, the new Faroudja DCDi Cinema™ and Audyssey dynamic eq. The OP is not using the amplification section that are identical.
 

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The 506 is ok however if your looking for something that is "futureproof" you would be best off not going with anything that does not have pre-outs so the 706 or better would be a better choice.
 
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