LOL -- believe me, I wish I could set the sub on fire...I'd roast marshmallows right off its 10 inch driver...
But I think once I get a real sub into the HT system, the PSW350 should be okay for two channel duty in my stereo room...
I totally hear what you're saying -- and it makes sense on many levels; however, many will say that if you have a sub -- even if it's a worthless piece of crap like the 350 in question -- it is perhaps more effective to actually put it into service because of that dedicated ".1" LFE signal from DVD and BD soundtracks...there's something about feeding tower speakers, even huge capable ones, with the sub bass from .1 soundtrack signals that doesn't seem "right" to me. In the meantime, to at least let the RTi12s flex some of their muscle, I am keeping the crossover for these at 60Hz inside the AVR, as advised by Polk personnel; this seems to allow for a good balance of letting the 12s pound a bit while the sub gets even lower frequencies -- even though the PSW350 may not be able to handle those as well...
yepimonfire is giving you good advice. You ought to move that subwoofer to the two channel system
now.
However it may seem to you, there is absolutely nothing wrong with sending the LFE channel to the main speakers, if they are capable of dealing with it. The ONLY reason such a channel exists is because most speakers are not good at dealing with deep bass, so it is unwise to even try to do so. The origin of the LFE channel goes back to movie theaters, where there was a desire to add more bass, but without making the theaters replace all of their main speakers, which would have been unreasonably expensive to do. So they just added an LFE track, that, if a theater did not add any new subwoofers, would simply not play back in their theater, and it would not cause their main speakers to distort by trying to reproduce so much bass that they were incapable of doing. But for any theater that did add the subwoofers, they would play that channel to the subwoofers and have the bass.
In your case, your tower speakers are much, much more capable than your subwoofer, which means that your subwoofer is pretty much worthless
in your system, and by using it, you are not getting all of the bass that you could be getting. You see, in the LFE channel, the frequencies below what your subwoofer can do, you are not getting too well. But you could be hearing some of them, if only you would redirect the LFE to your main speakers which play deeper.
Really, if you want the best sound from your system, you ought not use that subwoofer at all.
If you wanted maximum volume, you could send the LFE channel to both the front and it, but it would not be giving you maximum fidelity that way.
I almost never recommend running the main speakers as large, but in your case, you absolutely should, until you get a subwoofer that plays deeper than the main speakers. Right now, you are throwing away deep bass that you could be hearing, if you set it up as yepimonfire has suggested.