I'd have to give the nod to seperates. Purely from an upgradability and sound quality standpoint. While there are a lot of "good" receivers on the market, I don't think you can achieve "really good" power, processing, flexibility and upgradability from just a receiver. Also, I tend to shy away from "multi-channel" amplifiers, such as using only one to power your entire system. What would happen if the amplifier goes on the fritz? You've now lost your entire system. I prefer to stay with seperate 2- or 3-channel amps, (4-channels, if they're going to be bridged), that way if one dies, at least you still can listen to stereo sound by simply doing a quick re-wire of your system, if necessary.
Which is better: separates or receiver?
My husband and I are considering integrating our stereo with our home theater. I am looking for any advice on which is better, running with a 5 channel amp and a preamp/processor, or using a big HT receiver. Any recommendations are appreciated. We are working with a budget not exceeding $3000.