First, you've left out some disadvantage to separates - you'll also need seven interconnects (Outlaw sells nice ones in a package for about $100).

So why separates? The main benefit is picking and choosing features on the processor side, and picking and choosing power levels on the amp side. For example, the 950 is more flexible in setting crossover points than most receivers I've reviewed. Composite to S-video conversion is a huge convenience for VCR owners – a few receivers offer that feature, most don’t. [Note that Outlaw recommends against using this feature, though.] On the amp side, if you have power hungry 4 ohm beasts, you can match them with a monster amp. But if you have efficient, 8 ohm speaker loads, then honestly, the typical mid/high end receiver ought to have all the power you need unless your room is huge and/or you consistently listen at levels today that will ensure you can't hear anything tomorrow (due to hearing damage).

Audiophiles will claim sound quality is better with separates, and there may be something to that. However, in my experience, even when separates are an improvement, it's a very subtle thing. And when you stack up a 950/7100 combo vs. a higher end Denon or Yamaha, I’d be skeptical of “dramatic, clearly audible differences that my wife, my mother-in-law, and the dog all heard” without at least a properly calibrated A/B comparison (never mind double blind testing).

-avi

[This message has been edited by Avi (edited May 26, 2003).]