I have gone all-separates for both of my Home Theater systems.
Office 5.2 System:
I replaced a Sony STRDB 1070 receiver (rated at 6x100 watts but which really put out more like 30 wpc, but a very nice receiver nonetheless) with a Sony TA E9000ES processor and an Anthem PVA 5 amplifier. Sound quality has improved enormously.
Main HT 7.2 system:
I replaced an Onkyo 797 receiver with an Integra DTC 9.4 processor, 3 (2 channel) Yamaha M-80 amps and a 2 channel Onkyo M-504. I'm just now setting this system up after moving in April to the new house (been busy), but I expect this system to sound terrific.
Speakers for the office system: 2 Michaura M665 towers (very much like the Axiom M60s) - I'll be modifying the cross overs with upgraded capacitors and resistors soon), 2 Mission DS77 surround speakers, an Axiom made, highly modified Merak MC634 center channel (swapped the Merak 6.5" drivers for a pair of Axiom 6.5s, swapped the 3/4" titanium tweeter for a 1" from a Reference 3a de capo, used the de capo's cross over which also lets the 6.5s run free - had to operate on the box a bit, but this is the best sounding center channel I've ever heard - haven't heard the jm labs center or many other greats) Klipsch LF10 1600 watt sub and a Dahlquist PDQ1500 15" 500 watt sub, and, of course, some home tweaked piezo super tweeters flat to 40KHz - 3 of them)
Main HT:
Speakers - Thiel CS3.6 towers, tweaked Merak MC6H center with Axiom 6.5s), Axiom QS8s, and a pair of M2s which I think I'll swap out for a pair of modified Michaura M55s, SVS 20-39 sub and a Vance Dickerson Titanic 10" sub.
Last time around I had the QS8s on the side surround positions and the M2s on the back - I think I'll go with the 8's on the back wall and the M2/M55 at the side surround positions this time.
Anyway, separates, they made a big difference in my systems.
