Powered speakers show audiophiles are confused

Finally, if you got more than $100K and want to sweeten the deal:

Processor- Digital Meridian Surround Controller 

L-R Channels- Meridian DSP 7200

CC- Meridian DSP 7200HC

Bed and Height Channels- Meridian DSP3200

Can anyone reading this thread tell me how to get a better system for the same $ with a passive setup???

When you have a LOT of speakers in a passive system you have a LOT of speaker cables. Not just in the runs but in the speaker crossovers as well. Those speaker cables can choke the signal. Why is it that some 8 foot pairs of speaker cables cost more than zip cord? To "unchoke" that signal. That can get crazy expensive if you run high quality cables to many speakers over distances, like in a surround setup. Active speakers eliminate that potential choke point while putting speaker cable budget in your pocket to spend elsewhere.

Has anyone noticed that a matched system of processors and active speakers also gets rid of the confusion surrounding your choices that the OP mentions? 

OP, you mentioned you have a budget for an upgrade. I have been holding off for a new thread but may as well get started. I don’t see a weak link in any of your components. Paradigm/Lyngdorf/Anthem/PS Audio is all top shelf.

Is there a problem in:

A) Component synergy/mismatches?

B) Room/system interaction?

C) You are a tough customer? After being around studios and studio budgets I would get that.

From your pics my guess is room/system interaction but IDK for sure.

@Kota1 Lots of great points one very striking one that goes right along with the OP is speaker cables. If they are a component and worth the price many people are willing to pay then eliminate them and go with active speakers. Many people who have decades of experience in listening to sound systems do think speaker cables do make a difference ok then why not listen to them and eliminate the cables we then that forces class D amps, Peter Lyngdorf has a speaker test with his D amps, you turn up the amp to 100% you put your ear next to the speaker driver if you can hear it buzz you don't have to pay for the system, 137db dynamic range is extraordinary in Steinway Lyngdorf systems. P Lyngdorf is a walking vault of patents for class D amps and his equipment may be an exception but it does mean that class D amps and 3.2kw power supplies are for real.