Difference Between Recievers and HTIB?

Most receiver manufacturers overstate their output (wattage), and HTIB manufacturers overstate their output even more. You see companies like Samsung, Sony, Philips, Sharp, etc make HTIBs but the components are not good at all.

you can a good-bang receiver for $300~ and 5 speakers for $200. I know the AVR is good but don't have personal experience with the speakers.

Your sony speakers are lacking IMO. they distort too much even at medium levels, they dont have much energy and sound like superloud headphones at times.

I would say that the quality of component in the vast majority of HTiB are of lower quality when compared to stand alone receivers. I am not saying that all of them are bad, but HTiB are designed to be a cheap alternative, that is their target market.

I would also say that the feature set of HTiB are smaller as compared to stand alone receivers. Look at Bose for instance, the cream of the crop HTiB. Bose HTiB comes with VERY few features.