To Shakedown's point, while that's true, newer titles are taking advantage of 7.1 and having a 7.1 setup in a larger room makes a significant difference over a 5.1 setup. Using additional surround modes in the major processors will allow you to use 7.1 from a 5.1 encoded environment.
In terms of processors, consider Emotiva, Marantz, Integra, NAD, and Anthem (listed in ascending price). If you want to go more than 9k for a processor, then look to audition a Classe, Theta, or SimAudio Moon. Some of the more expensive brands have not kept up well with the flurry of HDMI changes, FYI. I personally prefer the upgradability of the Anthem models and the NAD designs. At least you know that you have a stable platform for 5-10 years. My disclaimer is that I've been an Anthem pre-pro owner for years and very, very satisfied.
In terms of processors, consider Emotiva, Marantz, Integra, NAD, and Anthem (listed in ascending price). If you want to go more than 9k for a processor, then look to audition a Classe, Theta, or SimAudio Moon. Some of the more expensive brands have not kept up well with the flurry of HDMI changes, FYI. I personally prefer the upgradability of the Anthem models and the NAD designs. At least you know that you have a stable platform for 5-10 years. My disclaimer is that I've been an Anthem pre-pro owner for years and very, very satisfied.