HT System.
I am not familar with the deftech sub/sat system, but the Yamaha 661 should be more than adequate for those speakers. If you go with satellite speakers, consider an entry level receiver in the $2-300 range like the Yamaha RX-V659 or a lower end model.
For $800-1000, you can get a quality 5.1 bookshelf speaker system. The SVS 5.1 system in white and silver are currently on sale for $800. Also AV123 X-series speakers would be a good option in your price range and they offer real wood veneer. If bookshelf speakers are too low on WAF, you might consider in-wall and in-ceiling speakers.
Also, buy a few rugs and other furnishings to tame the acoustics in your tile rooms.