is a center channel really necessary??

thanks for all the thoughtful responses so far. Just to clarify, I am debating 2.1 w/ stereo integrated vs 5.1w/ AVR (not 4.1 vs. 5.1), so Byroncunningham brings up a good point. Sounds like you DO lose alot with a two channel downmix.

And it's not just about sound quality, 5.1 will require more boxes around the room that is a multipurpose family room and as much as I like killer sound systems, there's an aesthetic issue here.

One thought if I go 5.1 is to put the surrounds in the ceiling, which takes away two boxes, but still leave 3 for the front stage which will sit on top of a built-in cabinet (maybe 24" deep)..

For a 2.1 system, couldn't I choose a BlueRay player that downmixes into 2 channel rather than doing it in an AVR?? I believe the Oppo BDP-93 SE does this.

Stage 1 option - HT bypass integrated. Do these work??

One option I was thinking of was to wire the walls for surrounds and leave them unused for now and go with something like a Peachtree Nova (I am a Sonos user) with a pair of speakers from a big mfg (like Paradigm/B&W) so that it would be easy to find a matching center down the road if needed.

So Stage II, if needed later, would be add:
1. AVR
2. 2 in-ceiling surrounds
3. matching center

I've always wondered how well home theater bypass works as you are using the amp of the integrated with a very different amp in the AVR.

The advantage of this approach also is that I could just get a cheaper AVR as it's only going to drive the center and surrounds.

PS I actually demo'd the Peachtree Nova and a set of Paradigm STudio 10s w/out sub and was pretty impressed. Nothing mind blowing, but for a package just over $2K it was awesome.