How do you determine how much to spend on speakers

You're looking at almost exactly what I have in my system. First you have to understand that there is always something that will sound better than what you have. The goal is to own equipment that makes you happy. I purchased a pair of Focal 836v speakers ($3,000) and Integra 50 receiver ($1,400) and an Integra CD player ($300). I can't have a dedicated 2 channel system so this gave me the best overall sound. Later I added a Martin Logan Dynamo 700 subwoofer to handle the .1 movie duties. I've listened to many of the Focal Chorus series speakers on a system that is intended for the Utopia line so I've heard them on equipment where the speakers were worth less than the tax on the cables used in the system and they sound great there and on affordable equipment. Unless you're the type that is never happy, any system in the 5k range should sound wonderful.

Don't spend a bunch of money on a CD player IF you plan to hook it with a toslink cable and stay digital into a receiver as there isn't any difference. The digital signal is nothing more than ones and zeros. If you're going analogue from the CD player then it makes a difference.

I just purchased my wife's dad a pair of Focal 706v speakers and compared them to Paradigm, B&W, PSB, Martin Logan and a few other speakers in a similar price range and had my opinion of the Focal Chorus series confirmed. They really sound great.

I'd recommend listening to a set of Focal Chorus 816v, 826v and/or 836v, you'll may find something you like.

I have an Integra 50.1 receiver with Focal 836v speaker and last Monday I listened to a Focal 807v bookshelf speaker that had significantly better clarity in the sound compared to my "better" speakers. The difference was the 807v speakers were being driven by a Pathos Inpol2 (I believe). It made me think that for certain music types I might prefer the cost of the bookshelf compared to my floorstanders so that I could put more of the budget towards a better amplifier. Jazz comes to mind.

I would suggest listening to some of the less expensive speakers on really high quality amplifiers and see if at their best they give you the sound you are looking for.

Make that the Pathos Logos.

As an update. My primary system is now using a Yaqin MC-30L that cost about $600 with my Focal 836v speakers that cost $3,000. I couldn't be more happy with the amplifier or the system. It is more about individual products and not relative price points.