Sounds reasonable to me.
That Onkyo system is probably the most touted HTIB I've come across. Im not exactly sure what the exchange rate is today, but I believe this unit was being had for less than 700 dollars time to time here in the US.
So that kinda sux. But I have to say, you come from the land of hi-fi! There must be all sorts of nice stuff over there, yeah surely pricier, but maybe you can land something as used.
UK brands include Monitor Audio, Quad, B&W, Mission, a slew of others I'm sure. Yeah, I understand that with a limited budget, it'll be hard to pull off.
But, if you were willing to build over time, you could get a receiver and a stereo pair for the time being. Just something to consider. I just don't like the idea that you are paying that much more than we do for an HTIB of all things . . .