I for one love having a decent-sounding hi-fi, but choose to limit my budget to no more than £400 per component. My friend has spent more on his Linn system's CABLES than I did on my whole kit. However, between the two of us, he has upgraded his system three times in the last 7 years, I have only replaced one damaged unit. What point am I making? Only that the replacement market seems to be drying up except for the very dedicated. To get the low-end to mid-market consumers (like me) to buy a new piece of kit, makers need to find something new, whizz and indeed, bang, to grab our attention. Seems that that is in home cinema.
I very recently spent some money on a 5.1 speaker package and receiver. That's money I haven't felt like spending on my hi-fi because I can't see there would be that much benefit -- let's say I change my speakers (as I have been considering): it takes a lot of effort to ensure that the speaker-change doesn't precipitate a change to the amp and other pieces in order to get the balance I like. So, my 7ish year old hi-fi continues until it needs replacing.
Sadly, with everyone after the latest technology, I fear for 2 channel. Digital cameras are much the same... I love the image quality I get from my Canon EOS SLRs, and I'm certain an image taken on this old tech is many times better than digital cameras costing even 4x as much. However, the man in street is obsessed with spending £400 on a digital compact which won't give images which are as good as a £100 Olympus mju for example. But there it is -- that's the growing market.
On the positive (short-term) side, it means people who do like SLRs and 2ch hi-fi get great deals on new and especially, used kit. Lap it up while you can and let the early-adopters take the hit on early generation new technology.
FWIW, I think Richer were the masters of getting people into hi-fi and it had as much to do with the service as the prices. The former seems to have died away and they push their own products so hard that you can never be sure you're actually getting a good deal anymore. I still remember the people who walked me through at Richer back in 1991, with fondness. My latest experiences of Richer staff usually coincide with wanting to give someone a damn good thrashing. I even wrote to 'Julian' about it, but never got a response.
P