I am an American expatriate living in Taipei, Taiwan. I have spoken to many high-end audio dealers here and they all say that the market trend is overwhelmingly toward HT, rather than 2-channel hi-fi. In fact, of interesting to note is that there are two international high-end audio shows here every year. One is for AV systems and the other is for hi-fi systems. Guess where the hi-fi show is trending heavily - you got it, HT with a great hi-fi.
Dealers told me that most customers have only one room and one budget for one system. Also, many AV processors have been upgrading their preamp to improve audio quality. In the end it seems there will be a convergence where consumers will be able to have both!!
I currently have a HT system with a Lexicon MC-1 processor/Krell 250cd player/Sony DVP-9000ES/Krell KAV-1500 5-channel amp/B&W Nautilus 801s as fronts/HTM-1 as center/Nautilus 805 as surrounds/Magnum Dynalab 101a Etude tuner/PS Audio Power Plant 300.
I can say with confidence that when I play my system on 2-channel sound, it can match or outperform many of the best 2-channel hi-end audio systems in the market. But it has also terrific HT, which none of the Hi-Fi systems out there can put any claims on.
So there is hope for us who want to have both great HT and great Hi-Fi after all!!!