This is the setup I have in my new one-bedroom apartment. I have nothing on a lot of setups here, but for the money, I think I did really well.
60" Sharp LED LCD 3D Quattron Smart TV
Onkyo S9400THX 7.1 channel THX-certified HTIB system
DVDO EDGE GREEN
Monoprice HDMI switch
Samsung Blu-Ray player
Roku 2 XS
Composite video switcher
Monoprice Composite to HDMI converter
Logitech Bluetooth to analog audio adapter
120GB OCZ Agility 3
3TB WD Caviar Green
Ceton InfiniTV4 USB
I just found out (after a washing machine disaster that flooded the hallway) that no one lives below me, so time for some SURROUND SOUND!!! It's used mainly for TV, occasional movies (usually through VUDU HDX), and occasional casual gaming (usual Wii). At about 9 feet, the 60" TV is perfect. I could do a little bit bigger for HDX movies and Blu-rays, but Comcast's poor picture quality would be even worse than it is now on the TV side, and Wii would be pretty terrible at 480p. I recently replaced my Comcast DVR with the HTPC. What an improvement! I have a Comcast double play package for two years with Blast! internet and the higher up digital cable package plus HBO and a bunch of other crap.
Sorry for the weird lighting and TERRIBLE pictures, there just isn't much light in that side of the room, so they look really fluorescent from the flash. They were taken on my SGS III (also have an iPhone).