Although I do not have the most-high end setup in the world, I have more than most average people would ever need or want at a much lower price than this article. With a 100” screen (16:9), a planar 720p dlp projector, yamaha 7.1 receiver w hdmi switching and all speakers, blu ray player, all of the hdmi cabling, and an AV stand, my grand total was just under $1,650.  Of course I had to do installation myself.  Plopped in a finished basement, and no worries about disturbing the rest of the house.

It should be said that for those currently watching movies on a tv or flat panel using the standard system speakers, adding the most basic ($500) HTIB surround system would be a revelation.

The effect spatial sound distribution has on the viewing experience is enormous.  Be warned however, having savoured the experience, thou shalt covet popcorn machines and film reel carpets!

I think the prices are in line.  I believe the term “Home Theater” gets used rather loosely.  A true dedicated Home theater should not disturb others in the house. So you need to do sound isolation. Using many different products that can be achieved. Like Quiet Rock or even Acoustical Solutions.
The room should also try to replicate as best as possible what the director intended.  Which means accurate color from a projector, a $1499 projector currently on the market can’t do it.  Only 3 chip projectors get close to D65.  They are getting a lot better. But they also need to be calibrated.  As far as audio goes a system needs to reach certain SPL levels to meet that expectation as well. Not just the high frequencies or lows.  It needs to be balanced across the whole frequency spectrum.  With different room sizes as do the speaker sizes change and equipment list change as well. 

I feel that for the most part the prices above represent a good ball park figure.  I have seen and heard great dedicated rooms that cost $20k as well as $500k.  As the room gets larger so should the budget. 

Like they say in the article it also depends on what you do with your decor.

There is some good information here...but, none of the comments or system suggestions address proper viewing distances, the effects of ambient light on a front projector’s image quality, the issue of proper sound pressure levels in rooms of varying sizes, etc.  (We use SMPTE specs when evaluating a given installation.)

My point is, “one size does NOT fit all applications”. Nowhere in this article is that fact mentioned...just the price points.  What works well in one room will not perform to expectations in another space of different dimensions. 

A theater experience is one that should excite the senses.  When someone sees a video artifact for the first time, they cannot ever “Unsee” it ... the same thing applies when presented with an audio system that is not sufficient to fill the space as required to satisfy the sensory expectations.

Bottom line...a proper entertainment system design choice is all about fulfilliing expectations, not just getting a price. You have to research the system requriements based on YOUR environment and the science required to “do it right the first time”!!  Buying anything based solely on price has usually not been a satisfactory experience for me.

Last time I checked a Sherwood VR670 home theater speaker system with DVD could be purchased for under $300.  J&R;Music World has a quite respectable Toshiba 32” LCD for $699.  So maybe it would be more interesting to see how much home theater you can get for under $1,000, which is still more than most mainstream consumers are used to.  Course that comes with all remotes and cables necessary, and you don’t need a pony-tailed “expert” to sell you snake oil, so it’s probably not going to fly…