Heard my friend's system, thinking of leaving hifi

Look to the room acoustics first. There are many threads on this subject and lots can be accomplished without spending much $.

With all the equipment I have purchased, the biggest bang for the buck was acoustic treatment. In order of priority for good sound, I would treat the room first, deal with speakers second. Unfortunately, most acoustic treatment, and really effective treatment, compromises the aesthetics of the room, especially if added after construction.

Don't leave, don't be discouraged.
Think of it as a learning experience and try to get to that level a step at a time or look for components that you can afford that get you close.
There are so many people who say they are audiophiles who then scoff at the thought of cable upgrades or of any new purchases that will improve the sound.
You have just proven them wrong.
It's not all about the music anymore is it?

One of the great things about hearing a truly great system is that (aside from live music) it gives you a reference point at which to aim. The fact that your friend is nearby and good enough to have you over means that as you sample different products and grow your own system you (and he) can check your progress against what he has going on at his place.

Money matters but not as much as some people think. Component synergy is very important. Finding products that complement each other is key. So is the room. I've heard very expensive systems sound very mundane in a bad room (or one which does not allow optimum placement of equipment and, particularly, speakers). I've heard modest systems that sound wonderful because they are positioned correctly in a good sounding room and the component parts have been carefully selected.

Venture forth, try new things. Keep refining your plans as you learn and try to anticipate where you are going. Avoid relying on other people's opinions, trust your ears. You know what sounds good--you heard it at your buddy's place. My stereo is still not where I want it to be and I've been evolving it upward for over 20 years. Folks on the Audiogon have been a huge help and I've invested the time to experiment and listen.

On the narrow point of what to change, I'd agree with the others who say start with the speakers--the transducers matter the most (despite what the folks at Linn used to say!). Set a budget, take your time and listen to everything you can. If you don't find anything at your price point that is significantly better than what you have wait until you have more money and then go listen again. It took me two years to find my current speakers and a year to find the one's before these. I think you can get very close to what your friend has if you are patient and willing to do the leg work.

Last thought: consider a pair of Harbeth Super HL5's. A peruse of the Harbeth users group will reveal that many folks are using Plinius amplification and are getting great results. The entire Harbeth line is phenomenal and the HL5's will, unless you have a very large room, have enough bass to give you the bottom end you are looking for. Get some nice (Sound Anchor) stands and set them up right (with lots of air around them). With the exception of frequency extremes and that last touch of detail and realism you may get pretty close to where you want to end up.

Thank you for all your encouragement. Please keep your insightful thoughts coming.

I live in an apartment, so there is no dedicated room and none in sight for a while. Hopefully I'll be able to locate my system in the same room as my office furniture but that won't be realized until I move to a different location. I'm going to have to deal with speakers being close to the wall in any scenario due to Wife Acceptance Factor. Currently I have a tv in between speakers and throw a blanket over it when I listen to music. My current room is roughly 20x30.

I definitely understand the importance of room treatment. You can really hear it at times, especially at the dealers, and usually can be held responsible for poor sound at the shows. (I noticed this at the HES show in NYC this past year.) The thing with the meridian system was that the thing wasn't in a dedicated room either. In fact, it had a glass coffee table right in between the speakers.

Regarding speakers, I was wondering what people think of Audio Physic and Von Schweikert? Any other speaker recommendations? I hear Dynaudio goes well with Plinius but I don't like the current line's aesthetics. I don't mind purchasing used.

Thanks again.