The small basic inexpensive Onkyo home theater in a box speakers are the sound quailty bottleneck.
If you are looking for better sound quailty then upgrade the basic inexpensive plastic Onkyo home theater in a box speakers first since the speakers are the sound quailty bottleneck, not the turntable.
5x speakers for under $200:
Or start with a better pair of speakers and add a matching center speaker later, keep using the Onkyo speakers for side surrounds or upgrade those later too and they don't need to match the front speakers:
Then later upgrade the subwoofer:
Whatever you do go with discrete audio components. You could go with a Home Theater in a Box set like this Yamaha YHT-5950U. Or start with a 3.1 setup and add rear speakers later as budget allows.
Later add rear speakers as budget allows. A second set of NEUMI BS5 or a set of Micca MB42X would round out the setup nicely. If you get the Denon S760H you could also add a small set of front Atmos height speakers like the Micca COVO-S for a 5.1.2 setup.