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Thoughts:
1. Using the term "tank" for that amplifier would be an understatement. The price involved for that sucker involves the cost of materials, R&D, cut for the dealer etc. A more powerful amplifier does not always cost more (for instance, a Rotel 5*200w amplifier is less expensive than, say, a Bryson 5*120) but generally within a manufacturer's line, the more powerful amplifier will also be more expensive.
2. Not necessarily. There is quantity and quality of power. In normal listening one is usually using less than 5 watts, but the extra power defintely gives one dynamic headroom at the very least.
3. As above.
4. Try it, is all that I can offer.
5. What is "very powerful"? Are you after quality? Quantity? Used power amps are often a terrific deal; you can pick up a used 5 ch power amp for less than $1000.
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