I'm a bigtime believer in rule #1. I think for most home theater sound budgets, the subs should comprise from 1/3 to 1/2 the budget, it is that crucial to the experience. It's so sad when I see someone spending $2k on speakers but only $250 for the sub. That should be an arrestable offense. But I suppose that is par for the course in the home audio world, a world where Bose reigns supreme.
Room treatments and large displays are always good things, but they don't make much sense outside of dedicated home theater rooms or listening rooms. Lets face it, most acoustic paneling and room treatments look goofy. And for most people, high fidelity audio isn't as important as an aesthetically pleasing environment. Of course, there are ways to have a room both sound nice and look nice, but that is tricky to do and only viable in some circumstances.
