Elevick,
You totally missed the point of a combo system when you said "They end up processing music through a mediocre receiver and then run it on a really nice 2 channel rig-it degrades the sound.".
In the system I described there is ZERO possibility of the music getting processed as the receiver (processor) doesn't even need to be turned on in order to listen to music. You simply listen to the 2-channel rig, independant of any of the components involved in the HT/multi-channel portion of the system.
I'm not saying a combo system is the way to go for everyone. It's not. If you have a goal to also have excellent multi-channel music, a quality multi-channel pre/pro and multi-channel amp is possibly the better bet. However, if the goal is excellent 2-channel music reproduction and a system that will also do a decent job with HT, then a combo system could be the best bet.
Ultimately, a combo system likely cost less, does a better job of 2-channel music reproduction and does an adequate job with HT. It is also extremely flexible as you can upgrade the 2-channel portion of the system without incurring the huge depreciation associated with high-end HT equipement.
But ultimately, I get back to the point of checking out the Linar model 10. Here you get a quality 2-channel and multi-channel analog integrated amp. You don't pay for useless surround modes and processors, just a quality 5.1 channel analog pre-amp and 5 channels of amplification, in one box. Let your relatively inexpensive Universal player do any required processing (heck, you already paid for the processor in the player, you might as well use it). Check out the couple of reviews available. In one, the Linar was comapred to a $14,500 ARC multi-channel combo and it was superior in some respects. BTW, Linar is owned by the founder/ex-owner of SimAudio. He knows his stuff.
Enjoy,
TIC