Denon 500 -vs- Denon 1705 based system

I am considering replacing my Panasonic SCH-T75 and given the threads on here and mag reviews a Denon 500 is pretty high up the list of possible replacements. The 500 has little to count against it but I am also wondering if it's worth me taking the jump to seperates. This will obviously mean more expense but I would probably base the system on the Toshiba SD340E DVD player and a Denon 1705 0r 1905 receiver/amp. I then have to find a suitable speaker package. Would this setup give a hugely improved performance when pitched against the 500 all in one system to warrant the extra expense? I doubt I would ever expand the seperates system as my girlfriend is not really into the floorstanders and speakers all over the room thing so I am limited to the smaller speakers.

 

Separates will always give a better performance than an all in one system, however, the Denon 500 is quite stunning. It depends I think on how serious you are going to take your home cinema, for the average person I think the Denon is the way to go.