Just for stereo? If so, those vintage receivers have a growing following. So if it works fine and you are happy with it, keep it. Of course, once you get a remote in your hand it's hard to go back.

What is your budget for speakers? I'd recommend Paradigm and B&W to start with, both offer good quality entry level and go up from there. A couple hundred dollars may only get you bookshelf from them but fine bookshelf they would be. Either would give you better performance than your typical mass merchant brand.

I'm not sure where to steer you if you want size over quality, I think Best Buy carries some JBL pretty reasonable.