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It has been a while so I may not be up to date. Ignore post if I am wrong.
If you want to do a bunch of rooms you can go big buck or cheap. Sounds like you are leaning towards cheap. Which can be fine.
Buy a two zone receiver in your price range. Use zone 1 to drive your surround systemin your TV room. Use zone 2 and connect it to a speaker switch box. A couple hundred bucks. You then use the switch box to control the various rooms. That toggle switch device you have is probably a switch box. You would have to be in the main room to switch the other rooms on and off. You could get the proper remote, RF, to control source and volume from any room.
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