Advice for cheap 5.1 setup, with Yamaha RX-V1065, old TV, plus streaming device

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hi all,
hopefully someone with knowledge and experience can point me in the right direction. I'd like to set up 5.1 surround sound on the cheap, so where possible using my existing hardware or secondhand stuff. We've got young kids, so i don't want to buy expensive speakers that could easily get damaged when the kids are jumping, throwing, generally causing chaos.

What we have already:
1 x old (2013) Samsung TV UE40F6500SB (40 inch)
1 x Yamaha RX-V1065, an old 7.1 AV receiver, with 4x HDMI ins, 1 x HDMI out, optical in,
2 x even older Wharfdale Diamond 7.1 bookshelf speakers. Still going strong but will get replaced eventually. Currently sitting 0.4 m either side of the TV.

Room dimensions: TV to seating position = 3.4 m, floor to ceiling = 2.5 m. The sofa is against the back wall, so i can't put any speakers behind the seating position, but i could put rear speakers to the sides of the sofa.


What i'd like advice on:
- Will the wharfedale diamond 7.1s be OK as the Fronts? If so, what speakers would be good to pair them with, for Centre, Sub, and Rears. Or what kind of spec should i be looking for? Or is it not worth it, and i should just save up for a whole 5.1 setup.
- Samsung is no longer supporting many of the streaming services apps on the TV, so I'm planning to get a streaming device (Nvidia Shield perhaps). What is the best way to connect this:
Streaming device ->HDMI-> TV ->Optical-> AV Receiver, OR
Streaming device ->HDMI-> AV Receiver ->HDMI-> TV
If i plug directly into the TV, will it pass 5.1 content to receiver or only as stereo? I'd prefer not to have the receiver on whenever streaming any content because sometimes just using the TV speakers is more practical.
- How to best place the speakers. I was thinking to put the sub between the TV and sofa-leg nearest to the TV, Rears mounted onto the back wall either side of the sofa, and centre speaker on the table below the TV.
 
The wharf dales might aswell stay, there a good speaker, i find that generally speakers are best matches, when using multiple brands they rarely gel together.

So I'd probably look at buying second hand 7.1 speakers, they seem to be readily available on eBay and cheap.
 
I'd move the existing speakers as rears, buy LCR Diamond 9.1 /center set, a sub.

Your kit is 1080p only.
Not sure what your TV digital out supports you need to test DD/DTS comparability
Your AVR might have standby pass through so if you just want to use the TV speakers, check the manual
 
Would a diamond 9 centre with diamond 7s as fronts just not sound good?
I've been thinking to get some wharfedale dfs (diffuse rear speakers) which would be smaller and easier to mount onto the wall than the diamond 7s.
 
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