For most the AV experience is limited to a flat screen, a sound bar and may be a small sub. Almost everyone I know has at least one rig like this.
Alternatives in most instances are not viable, mainly due to architectural issues and complexity. The issues.
An AVR or AVP is a huge barrier. The boxes are large with an absolute rabbits nest of wires coming out the back. If an AVR is the choice, then they more likely than not will have bought far more power amps than they will ever use, as the room is more likely than not unsuitable for surround audio on multiple counts. The amps the owner does used are compromised by the number of amps his does not use and likely never will. Then we get to the speakers, which create another set of interior design issues. When you tell the owner that half or more of the power he has paid for will be wasted in the crossovers of his speakers, he will question the wisdom of the whole undertaking. I should point out that even a simple second order two way crossover will reduce sensitivity by 3db which is half the power. As complexity increases the losses mount.
Then we get to the thorny issue of set up, more likely than not to be done wrong by the inexperienced further compromising results.
If anyone thinks this is a remotely sensible way to design current AV systems, please say so now.
So lets deal with this stage by stage.
I would say that streaming and cable are the dominant ways people receive program. There is some disc and we have the recent return to vinyl. The quality of streams has improved by leaps and bounds in recent years. With this years Prom season, I have been astounded by the quality that can be distributed via the Internet. Most of this quality can be obtained from two or three speakers and a sub or two. I maintain that adding more in unsuitable rooms is actually going to be a downgrade. In any event even a modest 2.1 system or for that matter 2.0 will easily exceed the performance of a sound bar.
In a system like this an AVR or AVP is not required. It could all be handled by the TV and apps. Systems already exist for putting the ubiquitous phones in control of programming.
Subs are already powered devices so that is no problem. So the rest of the system can be and should be. I have said all along the place for amplifiers is in the speakers. Passive speakers are so dated now and are yesterdays technology.
In active speakers you only pay for the amps you need, you don't have them sitting around doing nothing. In addition you only need to pay for amps big enough to power the driver it is connected to. A tweeter for instance requires little power and in most instances 15 or 20 watts would be plenty. Don't forget that ALL the power in this arrangement gets to the driver, and NOT half or less.
Not only that, but active crossovers are in general much better than passive ones, and give the option of a far wider selection of drivers. Just for instance, you can not match a woofer with a tweeter that is less sensitive, but it is no problem in an active speaker. In addition it gives far more flexibility in the control of slopes and overall frequency response. Responses can be changed on the fly remotely. In passive speaker you have to remove the crossover and change components physically.
The above actually means that it will be possible with the right products available for far more people to DIY their speakers.
Speakers though remain the big architectural barrier in many cases, especially given the huge popularity of the open "Great Room" concept in modern homes.
Now of the system in this house that has created the most interest among friends and acquaintances is this.
It sounds very good indeed and its potent as well. It fits in well with the gathering space.
So lets develop the concept further.
Make the TV the controller, and get rid of the AVP and the external power amps. Now the rig is even more compact.
So we now make the speakers active, which will improve them. The owner only pays for the amps he will use. You can make the active electronics panel mount below the speakers to make for very easy service and replacement. This system could easily be made to be reliable for a lifetime.
So far we have saved a lot of money. However in many instances dry wall work and the services of an electrician will be required. Dry wall work and a little paint however is not overly expensive, and the saving of an AVR or AVP likely more than pay for it.
One of the great features of the above system is the in wall TL sub, which really "Guilds the Lily". TL subs really lend themselves to in wall application.
I think we are at an impasse in AV in the home, and if current sources will persist in their current offerings and approaches, they will continue to loose money and leave the market. Then the sound bar becomes the only option.
With the right products there are opportunities aplenty for manufacturers, vendors and installers. A total revision is our systems approach is long overdue.
11.2 or higher AVRs are just a nonsense and will lead to no end of grief. We have just had a huge debacle involving the speaker below, which on investigation not only unfit for purpose, but also result in a short life for any amplifier connected to it.
We have to do better!