My 2 cents:
I am an old-time dyed in the wool two channel guy. Back in the day when Dolby Digital 5.1 hit the market (it was Called AC-3 in the very beginning)...I thought I might like the idea of "Home Theater". :nono:
Off I went, my trusty old Levinson ML26S 2 channel preamp was traded for one of these flashy new Lexicon DC-1 HT preamps. And yes.....I got all the whistles and bells......DTS option, fan option, the fully loaded piece that had a retail of damn near $5000 at the time.
Now armed with the DC-1, a pair of Martin Logan Request mains, SL-3 rears, Logos center and a pair of Velodyne FSR15 subwoofers I went home to enjoy my new "home theater experience"...... WOW! helicopters flew behind my head! BOOM! went the bass~! Oh boy!
Then, after I tired of watching movies, I loaded up one of my favorite classical CD's and dropped into my recliner to see how my new super-duper DC-1 would do with 2 channel..........:scratch2:

:sigh: :sigh: :sigh: :sigh: :sigh: :sigh:
Ever pop a balloon with a pin? That's how fast the magic went away in two-channel mode. To say it sucked would have been a vast understatement. You mean I just dropped damn near $5K in 1999 dollars for this~! The soundstage had totally collapsed, the sound was grainy, hard and completely 2 dimensional. What happened to the air, ambience and 3D soundstage my previous preamp provided? Anyway, I lived with my mistake for about a year before I sold it off. One can find fun in the effects modes the DC-1 offered which I felt were quite good, however these got old quickly as well. I was missing an honest 2 channel 3D airy soundstage that comes with a quality preamp and other associated components.
Today, a loaded DC-1 will fetch about $200-300. A well kept ML26S $3000+. There is a reason for that. The preamp does matter, however if the rest of the system will not resolve a high quality preamp, it would lead a person to believe that the preamp was not worthwhile.....however this is just not so. Just as a CD only has binary bits to read, yet CD players can sound oh so different.
I went back to straight 2 channel about 8 years ago, and I try hard not to think of the beating I took getting out from under the "state-of-the-art" HT system pieces I bought. Never again.
Paul