Our semi-broken Panasonic all-in-one home theater unit finally bit the dust. The DVD changer had failed about 6 months ago, then about 10 days ago the sound stopped working. It lasted about 3 years - not terrible, but not great either. I doubt I would buy another similar product.
After having the DVD failure, I decided to only buy components going forward. Most home theater sites recommend this, and it makes it easier to keep up with technology.
I ended up choosing a Sony STR-DG720, which is a Dolby 7.1 system. Almost all of the reviews were positive, and the price was $300. This is not a top of the line receiver, but a seemingly a good one for the normal home theater owner (I am not an audiophile).
It takes HDMI in from our FIOS box and pumps out RGB to our Sharp projector (1080p compliant). The sound is good, being much better that what we had in the past. There are a wide range of one-button-push sound options, and it only took a few minutes to get set up. It comes with an auto calibration microphone to set the speaker levels for your room. I need to buy the back speakers before I use this, but I am looking forward to it.
If I were more picky, I would have likely spent about $500 to $600 on a Denon or Onkyo. However, based on the reviews I read, I am not sure I would have gotten more for my money.