If I could go back, I would have gone 9.1 or even 11.1 with small speakers in a small purpose built room, not unlike the one we're finishing up.
I would have taken the difference in funds and put it into a more capable receiver and would probably have room in that same budget for a second matching ($500) sub.
I'd still be watching a TV though at a much closer viewing distance though, I'm not sure I can go back...
I wish I could rephrase the quote above.
I have no interest in going smaller now and every interest in building a larger room/larger dedicated theater as soon as time and money will allow.