Maybe they'll watch it more once it's more fun than their 35" SD CRT?
One of the big things that people are constantly mentioning on the AV123 forum is that once people get their new HT speakers that they end up listening to a lot more music on it since it sounds so much better than they were used to.
I can see why you're hesitant to have them spend more money on this seeing that they might not get their money's worth out of it either because they don't use it or they aren't going to notice the difference between a $4000 system and a $8000 system.
I'm personally more worried about the audio than the video at this point as far as how much is being spent. There are a lot of really nice displays out there in the $2000-$2500 range including the Pioneer kuro mentioned already which would be my first choice.
For the audio side of things... there are a few things that are going through my mind
- For a lot of people, they'll be happy with just about anything better than TV speakers
- Some people can't hear much difference between a budget set of speakers and more expensive ones
- I have no idea what their expectations are for the sound end of this system (theater like volume levels / will it be used for music as well / etc)
- They've never experienced a HT system as a reference point
- The aesthetic consideration of small speakers up against walls is going to make putting together a great system difficult... and adding in the relatively low budget it going to make it extremely difficult
- The goal of this is to make them happy, so the motivations for making the system are not quite known with the information I have. It's not the way of thinking I'm used to as performance seems to be taking a back seat to aesthetics.
- I'm worried about how your initial choices for the components were made vs. other alternatives and how you presented these choices to them and how they came up with the 5k system as their best option. I don't think that going to BB / CC / etc. would have been a better option for them (or even a dedicated audio/video type store) as their motivation would be influenced by making money off them. At the same time, I'm not sure how much you're motivated by making money off this either. Your first response to my suggestion for a ~$1200 system that I would be confident would blow away your $800 system was that it would eat into your profits. That rubbed me the wrong way.
Overall I'm not trying to say that some of these recommendations you've been given are for sure the right way to go, but I'm not as confident in this information flow between us and the purchasers vs. what we're usually used to.
Instead of us getting feedback from the people who we're actually trying to please, we're making suggestions to you and you're filtering it for them.
I don't know if talking to them directly would give us different feedback or how your decision process is really working for how you're deciding what's best for them. I don't know their financial situation is, but I would assume that a $5000 (or more) purchase would be a significant decision for them and that's one reason they sought your external help in this matter. There are a lot of decisions to be made and everything you're going to decide on is going to mean making compromises. For me, the one more level of disconnect between the actual purchasers and us is causing a little frustration.