The most important piece in a stereo system???

I take a bookend approach. I believe the DAC is the most important piece, followed by the speakers, then the pre-amp, then the amp, then powercords,then the power conditioner, then speaker cable, then interconnects, then the transport. I base this on my preception (flawed and colored by taste) on the general level of development in the Audio Industry. I think there's more variation in DACs and Speakers then in the other components, hence perception and taste come more into play than with the other pieces.

Percentages depend to some extent on absolute $. When I bought my current speakers (which I never intend to replace unless they wear out) they were the most expensive component in my system, and on a US retail price basis, a bit less than 40% (ignoring record playing equipment and just counting cdp -pre -amp -speakers and cabling). Ive since upgraded cdp and amp and downgraded the pre and the US retail price of the speakers would be about 25% of the total retail, and actual cost about the same percentage.

Since I am perfectly happy with the current breakdown, 40% on a retail basis for the cdp and 25% for the speakers (more like 35-25 on actual cost), I think that's a good balance now. (About 3% on cabling btw.)

Maybe I agree with everyone. 40 to 50% on speakers you can live with through upgrading, ending up at 20-25% when you're through with the process.

It's funny. I read all the posts and everyone says the same thing about a different component. I thought it was this , until I changed that and found a large improvement. I think the truth be told, they are all important, to the extent that the weakest link in the system determines the sound. Thats why people buy the component they like and build around it , trying not to screw up the sound they know their favorite component is capable of......just a thought.

The preamp. If you have made a bad choice in the selection of the preamp, it is very hard to "correct" it with speakers, source or amp. If you have made a great choice in a preamp, you are 85% on the way to nirvana. Also, a lot must be said for synergy. I have seen great components (preamps, speakers, and amplifiers), while great individually, that just don't go together. No reasonable technical explanation can be given. Whereas the substitution of a "lesser" component will bring back the ease, effortlessness and beauty. Craig is right. The real question is not which piece is most important. It is which piece do you want to start with. I say that the best place is the preamp.

In a sense, everyone above to me seems to have a good point. But basically its the weakest link, isn't it and finding it will make all the difference. Apart from that, although I very much agree with what RCprince has pointed out, to my experience it have been the speakers. Only after finding the right dipoles, I've been really happy with my system.
Cheers to all and compliments of the season!