This receiver is definitely not a waste, you'll get very good movie soundtrack and music performance from this with a good speaker setup. As your listening area isn't too large, the 80w/channel it puts out cleanly should be plenty of power as well. The only downside to buying a receiver that's a bit long in the tooth from an age perspective is that there are newer software improvements and enhancements that you won't be able to take advantage of. Considering what you purchased, your not too far out of the water, though.
For now, this is a nice receiver to get the ball rolling and if you find out after a year or two that you'd like to upgrade, someone else likely will be willing to buy it from you that's just getting started as well.
Like you mentioned and Rooz suggested, do your research here and other online HT forums before you drop your hard earned cash. I would also suggest listening to as many speakers as possible before you buy as this area is very subjective and no one can tell you exactly your listening tastes. Other than local stores, online speaker manufacturers offer very good in home money back guarantee trials (typically 30-45 days). The only negative to this is if you're not satisified w/the speakers, you'll have to pay the return shipping which is usually $15-30 (most bookshelf sized models), but this is a small price to pay for getting exactly what you want.
If you'd like some suggestions on speakers, you may want to give us the budget your working with and if you're familiar w/any speakers and like their tonal characteristics (aka the way they sound), we can offer some suggestions... -TD
