As luck would have it I did get a loan of an Anthem 5 ch 225 W rms amplifier to compare to my integrated Yamaha RX2400-V 125 W x 7ch receiver's amps.

In each case the "distortion" or harshness I heard was on the recordings. Both the Yamaha and the amp play to, FOR ME(and others listening), painful levels with no discernable distortions or differences. I am not claiming there wasn't any, there obviously is if you look at the specifications or measure, just reporting that I could not hear them. I am not an "expert listener" or an audiophile just posting my experience in case it is of use to someone.

I would still go with separates if it was in the budget, but my next purchase will be rear channel backs if I start getting 7.1 DVDs or an HD DVD player.

My setup
M60ti
VP150
QS8
Velodyne DLS-4000 Sub
Yamaha RX-V2400
Room is 15 x 18" open at one corner and part of one side. Carpet but wall surfaces are fairly reflective. Listening position if 12'.