The biggest issue with going with an AV receiver and stereo integrated is that it takes about $800 to get into an HDMI receiver and that's nearly half of the stated budget.
I have an Integra 50.1 receiver that seems to be a much more solid unit that my friends Integra 40.2. Just the difference in weight gives a clue to how much difference there is. I think a new 50.2 would be about $1,500. I'm not sure what the prices are on the next models up.
My friends 40.2 is currently running a 2.1 setup and it's not nearly as good for home theater as my 4.1 setup. Having the rear channels is necessary even if they are not high quality speakers.
Keep in mind that everyone has a different opinion of what sounds good.
I have an Integra 50.1 receiver that seems to be a much more solid unit that my friends Integra 40.2. Just the difference in weight gives a clue to how much difference there is. I think a new 50.2 would be about $1,500. I'm not sure what the prices are on the next models up.
My friends 40.2 is currently running a 2.1 setup and it's not nearly as good for home theater as my 4.1 setup. Having the rear channels is necessary even if they are not high quality speakers.
Keep in mind that everyone has a different opinion of what sounds good.