Why the facination with integrated amps?

There are some great sounding integrated out there. I have gone the route of separates to integrated back to separates. The main reason was when switching/moving up the speaker chain, I needed more power and I wasn’t going to use the integrated as a preamp, that would be foolish.
The last integrated I had was the Hegel top of the line unit which was very good. But when I compared the Hegel separates to the integrated, their integrated was nowhere close being as good. Same with the mcintosh integrated I owned 18 years ago. Both integrateds were very good but were compromised compared to their separates, but the separates were more $. When you look at equipment, the best dac or phono preamp will not be in an integrated, they will always be separate pieces. How many times have you seen that the dac in this integrated is the best dac you can buy? NEVER because they will compromise that piece to fit it in an integrated.

Another trend I see is to pack more functionality in the preamp, for example, my new Mcintosh pre has 2 phono inputs (MM and MC which I use) and a built in dac (which I don’t use, my external PSA dac sounds much better). IMO, making the preamp have more functionality makes more sense than a fully integrated for a number of reasons, 1 being keeping the low powered devices in 1 chassis instead of trying to isolate a huge transformer in the mix. Class D amps aren’t there yet IMO.
Separates also give you the flexibility of changing 1 or the other pieces from SS to tube. I might have an all SS separate setup and if I decide to go with tubes, I can change the preamp to tubes and keep my amps SS or vice versa.

The easy answer is value.  I just went through a complete upgrade of my system and the need to combine surround processing for TV/Movies along with my desire to get great 2 channel performance led me to the integrated amp world.  I couldn't touch the performance I'm getting out of the McIntosh MA8900 integrated without spending probably two to three times as much on quality separates.  That and the fact that this unit integrates (no pun intended) nicely into the surround system made it an easy choice (see my comments under the thread "New McIntosh amp build quality" - have an issue that they are addressing).

Oh, then there's the W.A.F. which was a fairly important consideration.  The Mac doesn't eat tons of space or look like an industrial relic from the 1800's.  

To each their own, but I think in today's audio market, integrated amps have a lot to offer at every budget level.

@fsonicsmith "Resonance control" WTF is that? Also, how on earth would a few inches/feet shorter "signal path" make any difference at audio frequencies? And what is combining transformer/cap function? That is some electrical engineering people don't learn in school, so you might enlighten us. :)) 

The price of good cables (ic and pc) plus good equipment support (space issue) is enough to go for an integrated. 

I can think of many reasons.  Cost, Space, Convenience etc.    Sure an integrated includes tradeoffs.  One power supply for all sections is a compromise that may have audible consequences.   Lack of flexibility outside of basic features may inhibit future upgrades.   But the real question to me is how much more do you have to spend to meaningfully improve sonic performance ?    Lets say you purchased an integrated for $5k after comparison with $5k in separates (pre- media streamer/DAC - amp), and determined that you could not hear much if any difference.   At what point would you hear enough of a difference to offset the increase in cost ?   $7.5k $10K ?    For many, cost is a consideration.   For most, integrateds are so good that it is only at the margins where improvements can be heard.  And for many outside of the suburban/rural US, space -IS- is a consideration.   A single elegant box is a much cleaner aesthetic solution when space is at a premium.     I use an integrated in my computer system (MF A3.2), and a former TOTL HT receiver in my family room (Marantz SR7009), but separates in my main system (tube, with 2 TT).