Yeah, the SR800 is a good buy. In fact, it can be a great buy at $320 (including shipping!) at the official Onkyo factory outlet store (
Shop Onkyo). But, as others point out, there are compromises. Still, if this is the budget range you're playing in, you'd be hard-pressed to find a better systems. I have friends who have earlier versions of this HTIB, and they are very happy with their setups. Sure, no lossless audio, and the TV does all the video switching, but again, you need to consider the budget range. And, a Harmony remote goes a long way to solving the switching problem.
If you want lossless audio, you need to move to a higher budget range. It can be done, though, without taking out a 2nd mortgage.