benn--
Just a thought:
I have friends with expensive ($25,000 +) home theater setups. I also have one or two friends who bought Ferraris. While the Ferrari people and the home theater people surprisingly don't overlap, I can tell you (from a distance) that the urge to buy a Ferrari and the urge to build an expensive home theater come from the same place. And it's not about enjoying the car or the movie.
IMO, there is no more empty purchase on the planet than a Ferrari--it's too expensive to race and too impractical to drive around. But an expensive home theater does a good job of coming in second, to my mind. And it's not just that you're spending a LOT more money than you need to, you're spending it in the wrong place.
Try this on for size: The more money that gets spent upgrading the home theater room, the more the home theater starts to look like a theater--stiff chairs in rows and cold decor. If you ask me this is crazy, and motivated by nothing more than novelty and the desire for one-upmanship. A great home theater should be the most comfy part of the house--beanbag chairs, carpeted risers and a beer fridge every three feet. Really. Are you trying to enjoy the movie or are you trying to impress someone?
And as for sound system, I GUARANTEE you that a beer fridge within arm's reach will improve the sound and experience FAR more than throwing $25,000 at the wall.
So. All I'm saying is, if the benn600 household is intent on going down this slippery spending slope, start slowly now with an expensive (<$5,000) stereo setup, and then compare that to a $300 set of earphones. The difference will be sobering, and educational. The reason home theater equipment gets so expensive is that it's so far from your ear, and so large. And no matter how expensive and large it is, it cannot overcome the handicap of not being pointed exactly at one person's ears. Again--there is only ONE sweet spot, and only two ears can hear it, no matter how much money you spent. Hi-fidelity multi-channel audio? I'm sure it leaves the speakers as hi-fi, but it doesn't make it to your ears that way.
This is why I would not spend a lot of money on multi-channel audio--buy beer instead. Really. I wish you could be there for the uncomfortable silence when friends show off their home theaters--and have to shake the dust off the equipment first. Every expensive dedicated home theater I've toured is the LEAST USED room in the house. The kids have their own computer-based systems upstairs, the wife would rather listen to the radio in the kitchen, and there's my buddy sitting there in this vast, dark chamber, modeled on some medieval dungeon, bragging hollowly about how much he spent on it.