Is it a good deal? Like many things, it all depends on what you want. I like Klipsch a lot (own RB-61, RC-52), and if you're looking for very small speakers, and don't mind that the sub doesn't go very low, it's probably a pretty good deal. Keep in mind that with 4" drivers you're going to be missing some mid-bass. The sub is only rated down to 35Hz, which is not much for movies. BTW, the Klipsch web site list MSRP at $1194, not $1300.
If you're willing to consider larger speakers, AV123 has a 5.1 set for $776 (plus shipping, I guess). 6.5" drivers, & a sub rated down to 28Hz. If you're willing to consider adding $300 or so to your budget, and larger speakers, SVS has a 5.1 set for $1030 (+ shipping). 5.25" drivers, & a sub rated down to 20Hz.
Edit: Oops, took to long to post. jcPanny's post wasn't up when I started this.