A HT set up with 5.1 or higher channels makes sense when you have adequate real-estate for the speakers. But in a relatively smaller room a sound-bar is not necessarily a bad idea. There are mid-fi companies like B&W, Focal, Totem, etc who have very good quality sound-bars which when paired with a very good sub will create a relatively well-defined soundstage in a room that has a smaller footprint. The other benefit of such a set-up is the simplicity and it is going to blend well with the decor of the room relatively easily than a multichannel system. Although such a system would be cheaper than a full blown multi channel system but it would still be a good investment.
The other solution in a smaller room is to go for a 3.1 channel system with two very good quality floorstanding or book shelf speakers and a well built sub-woofer. No need to buy a dedicated center channel speaker as the two speakers in this stereo set-up would create a virtual center channel, hence a 3.1 system. If the room allows for it, you could even do a 3.2 channels system with two sub-woofers. Two sub-woofers in a relatively smaller room is not necessarily a bad idea as it is likely going to manage the low frequency peaks/nulls aka standing waves much better leading to balanced sound output throughout the room. I am currently using a 3.1 channel system, having a dedicated center channel speaker, with my Sony A80J and the performance is satisfactory.
Thanks.
