Well, having just purchased a new receiver (Yamaha RX-V2500) and a semi-audiophile, I hope I qualify enough to answer.I think that if you're settled on getting a HTIB system, the Onkyo HT-S894 is the way to go. Definitely has better output power/THD numbers than the Kenwood units you referenced.You might want to go to
http://www.audioreview.com and browse some of the user reviews out there as well. Also, keep your eyes on eBay; you might find a deal there. In fact, here's an auction for the Onkyo system:
http://cgi.ebay.com/New-Onkyo-...wItemJust found this...B&H has is for under six C-notes:
http://www.bhphotovideo.com/bn...&Q=&O=I personally prefer component systems, but I can see the appeal of having everything new at one time. Good Luck!