..."I have listened to better systems than mine and they have always included separates and now that I can afford to, I want to improve on what I’m currently listening to..."

"better"? What is it that makes them better? Contrary to some of the hogwash spewed about the place, loudspeakers and the environment they are required to operate in, are the most important factors in what you hear...Isn't it possible that those other "systems" have had more care taken in their set-up and calibration which results in a perceived quality level?...or perhaps you simply prefer the sound of the other loudspeakers...any single piece of gear that imparts a "sound" to the signal is in reality a distortion and a departure from the old and time-tested ideal of "straight wire with gain"...you should really try to determine, using YOUR ears and YOUR preferences, what is it about these other systems that you find appealing. Throwing money at a "problem" is not a particularly efficient way of dispensing with it, and most certainly if you don't know why the "problem" is there to begin with.

I believe in separate components. They are much more flexible, that does not mean however, they are THE answer. I also believe HT and it's variants to be a waste of space.

Keep in mind, most of the gear in this price range will be of a minimalist mindset, eschewing things like tone controls...but that's OK...you can spend the rest of your life searching for the Grail("better"-ness) by endlessly auditioning interconnects and speaker cables to take their place...and then of course there's at least five channels of amplification to deal with if you go with separates and there are always tubes(valves) to consider, so you'll need more AC sources and after-market IEC/CE sanctioned power cords, power line conditioners, hospital-grade, cryo-treated outlets(with copper contacts lovingly crafted from ores transported by Peruvian virgins), a dedicated circuit and breaker...cable bridges, marble plinths, sand bags, lead shot and maybe a picture of "Fatty" Arbuckle to grace your listening area(I hear tell it does wonders for the mid-range)...so much for your budget!

jimHJJ(...just some food for thought...)