So I finally understand....
I helped a friend set up his room system home theater consisting of a 46" Sony Bravia KDL4, a Denon 1201 (I think that's the model), and a set of 5.1 Paradigm Cinema 70s.
After calibrating, I realized that the sounds was much more robust and full than my system, which I paid much more for. I mean, some of the detail was more muddled on the smaller system, but the overall effect of the system was much more enveloping and it seemed to have more impact than my own.
Then I realized that this was in a bedroom (15x10) with carpeted floors, a bed, bean bags all over the place, bookshelves full of books, and a stucco-like ceiling.
I did a frequency sweep with my SPL meter and found that although there was peak of up to 6dB in the 100Hz ranage, there was no dip that was more than 3dB. the response was much flatter than what I have at home. I also did the clap test and found that there was very little echo in the room.
Man, I know I've read that room accoustics make a huge difference, but I didn't realize what I've been missing out on!
Next step for me is room treatment. I don't see anything else being as beneficial now.
If his $1000 5.1 system can sound that good in his room, I can only imagine what mine would sound like with a proper room! (Well, I'm assuming that I paid for what I got and I wasn't ripped off!)
Plus, I just wanted to thank everyone that has been educating me on the importance of room accoustics.