Cdwallace,
One has to be definitive to be heard in these debates. So I take a clear position which also corrseponds to what I believe, advise and have experienced.
Look, it doesn't matter what has been posited academically or by research labs regarding the psycho-acoustics of MC -- no system made available to date has been anything close to convincing. But more to the point, they have been destructive of tone, corrosive to holistic representation of sound, and any damaging to realism in spatial presentation.
But let's put even those flaws aside for a moment. $10,000! What compromise must you make in quality of power amplifiers and speakers to spread much of that money over 5.1 or 7.1 channels, instead of 2? I can promise you it is a vast qualitative difference in gear, and no amount of processing makes up for it. In fact, the processing exacerbates it.
That budget is much too low to be able to match in 5.1 channels the tonal, spatial, musical and emotional fidelity that can be attained in 2. Moreover, very few rooms can intelligently accommodate more than 2 channels. I've been through, in detail, the promise of matrixed and discrete 4 channel; DTS; Dolby Surround; SACD Surround, etc., etc., etc. For $10,000, $20,000, $30,000, $40,000 and probably beyond, I can always pull together a system in which 2 channel reproduction will be more convincing.
I've heard the 20.2 system under development at USC with Tom Holman's participation. It was fascinating but not encouraging. High Fideltiy in music is not being achieved by maximizing the number of drivers. It cannot, at least today, be achieved by software correction for all the physical errors introduced by many imperfectly-matched drivers attempting to do the same thing. It is not being attained by discrete approximations of absorbed, reflected and reverberant energy. All of these attempts are sucking life and tone from musical sound. But even if you don't agree, surely you grasp that you can afford much better fundamental-performance speakers if you're only buying 2 on a capped budget, rather than 5. Surely you can agree that much better sounding amplification is available if you're buying only 2 channels of it. If you're buying at Best Buy, perhaps not. Let's assume you're buying elsewhere.
I have no argument with someone who likes MC for its gimmicks and novelties. Whatever entertains you! But if you want the highest possible music fidelity, communication of emotion, and tone, then 2 channels are your optimum solution at your stated price, and well above.
Phil