replace a full Cello System?


an open question, and your comments are highly regarded...
I have a family friend with a Cello system (Palette, Performance II Amps, PS, Stradivari Speakers, strings). Its a monster system and she likes it. However, she has moved and believes the system is too big for her now. Given the current quality of her gear, can anyone suggest a 2009 approach to the following listener needs...(I know its subjective and apples/oranges, but please humor me)

- full sound, high definition
- power not as important (small apartment)
- speakers can't be huge
- she likes the palette, is there another pre that has parametric eq out there?
- CDs will be primary source, need input for one or two more sources in the future
- need to be able to pay for the new equipment with the sale of the old (preferably with money to spare)

I'm afraid I've been out of the game so long I'm not sure of a starting point. Any suggestions toward a solution would be helpful. thanks.
amfibianandrew
Dear Amphibian, other than Jaybo's advise above, I can suggest she change ONLY the speakers. For a smaller sized model.
Depending on how small the new space is (how small is it, btw??), these speakers could be a respectably "wide range" / fullish sound floor-standers or smaller, stand-mounted, with the addition of two subwoofer modules.

Considering the ground rules you gave, it does NOT make financial or sonic sense to get rid of the present system; a commensurate replacement today (the "2009 system") would be extremely costly (Goldmund, FM acoustics, Soulution, come to mind). Her equipment, spekaers apart, does not take up too much space, no less than most contemporary stuff (fm acoustics being a notable exception).
I'd go active ATC SCM 20 and a 0.1/12 sub in an appartment. The Cellos were used in mastering - they have a 3 inch dome midrange - the ATC's 3" dome is probably the highest regarded dome midrange out there and has the same studio pedigree (used by Telarc). Keep the palette - if she likes it then nothing else wil lcome close.
to everyone, thank you for all this advice. The issue is her apartment space is small and she may be feeling the whole thing is a little overkill for her needs now. I agree the Palette should stay, she likes it and know how to use it. The Performance II and Strat Masters are really hulking. It's a lot of power for her. She sets the palette at about .5 gain most of the time. I was just thinking she might be better with a some sensitive speakers and a nice two channel amp. Nothing crazy, but good sounding. This would free up some money for her, give her back her space and still service her desire to listen to classical and jazz.

For the record I definitely hear those who say "so what, its a full Cello system just keep it"

For those that would buy it, what sort of return should she expect?
I tend to agree with those who say that you just replace the speakers and, probably, the amps, but keep the current front end. There's nothing out there that can really match what the Palette does. For speakers, perhaps some Dali or Totem speakers will be of interest to her--she should definitely give them an audition. Don't really know the amps that sound best with them, but when she auditions the speakers try out some different amps as well and go with the one that sounds best with them. My recollection on Cello equipment is a little hazy, they don't have any unusual interconnect conections coming from the Palette, do they?
The connection between the Palette and the amps is balance Fisher connectors (she has interconnects). The Palette also has an input for Fisher which is notable. I have read the Fishers can be terminated with XLR on the other side (the pin out is the same). I was thinking Totem would be nice, but not sure of the amp either. Her needs are a fraction of the equipment's ability, and always thought the two should be matched.