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Personally, I believe that more than $5000 is a much a waste as 10 inches.
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Spending $5,000 can get you a fine system, indeed. In fact, one of my friends put together a system that (minus the video portion) cost about $1,500 and it sounded better to my ears than a highly touted active digital system costing $80,000 (assembled by a dealer no longer in business). I've also heard a system in a custom built room that came to about half a million dollars (put together by another dealer no longer in business) that sounded WORSE than some $5,000 systems I've heard.
However, I have heard at least one system for about $15,000 that is audibly superior to some other systems going for about $5,000 that I've heard. But by improperly rearranging the speakers in the $15,000 system in the room, it can be made to sound worse than less expensive systems. I know; we’ve tried that just to make the point. But when properly arranged, it sounds heavenly. The main speakers in that system cost about $4,000 and, having spent that, you simply couldn’t get electronics that would do them justice within a $5,000 total budget, to say nothing of a total surround system. Was it “worth” spending three times more for it than a really good sounding $5,000 system? The owner thinks so and that is what counts. (And I think it sounds a lot better than the $80,000 or $500,000 systems mentioned above.)
While up to a point, spending more can get you better sound, there is definitely a point of diminishing returns when investing in HT gear, and just throwing money into a system does NOT guarantee that it will sound "better" -- or that it will even be listenable. Judicious selection of the components along with proper setup and room treatment are far more important than the dollar amount spent And taking care of one's hearing to be able to discern (and enjoy) the difference is even more important in the long run.
As for the utility of "inches", I'll leave that judgment to someone else. But it does remind me of the joke about the little old lady in Dallas who objected to people talking about the Texas Penal Code because she thought it was a system to rate male porn stars. :>)