If I understood correctly horn loaded speakers have less distortion.Generally speaking, maybe. However, since there is much more to overall sound quality than just THD, there is no guarantee that you'll get good sound by getting horn speakers. Frequency response is an issue, room interactions are a BIG issue, impedance matching between the speaker and the amp is an issue, and so on. I think all of these will have a bigger effect on the sound than the THD of any component.
I have been seriously considering upgrading my Onkyo 797 as it has .08% THD. The denon 4802 and up have .05% and some amps I was looking at have .03% THD.Phil - Don't use numbers like these as a basis to throw money around. They are so easily "manipulated" by manufacturers as to be meaningless. Use your ears - get the other amps into your house and try them out.
For example, the manufacturers could quote maximum THD at a reasonable power level across the audio range (e.g. 10W 20-20kHz), or just provide a single percentage figure which would be the lowest they could achieve at optimum (probably tiny) output and a single frequency.
Compare some of the manufacturers figures against the lab reports some hi-fi magazines give...
An excellent example of marketing hype is power output. Look at those 500W computer speakers that run off a wall adaptor. Now find a genuine 500W PA speaker - does it look similar?