My system
I don't know if this qualifies as a small system, but here goes: I have an Aiwa NSX-A888 bookshelf system, 4x50wpc (200 watts total) with three-way speakers, each containing a powered subwoofer with the other two for lows and highs, respectively. The speaker enclosures, according to the explanation and a diagram in the system's instruction manual, are designed to compensate for the small diameter of the speakers--and that they do, in spades. Am listening to it as I write this (the input source at the moment is my cable box, connected to the stereo by means of a Radio Shack monster cable [with the S-video input unused as I do not have digital TV--yet], set on one of the digital music channels) and the sound, considering the size of the speakers, is great. Granted, this system is not one of the big, well-known brands such as most of you guys have, but what can I say, other than it works for me.
Small, great sound. I've had the system as long as I've been here (almost five years), and haven't had one bit of trouble with it. The only modification I've made so far has been to elevate the speakers on two Tech-Craft 21" stands, which made all the difference in the sound. How I ever got along without them (as I did the first four years I was here--the speakers sat flat on the floor of my apartment, at either side of my desk) I may never know.
All of which makes me wonder why Aiwa was never a really big name in audio in this country (though their audio gear is extremely popular in Japan),

but that's a question for another thread.
Kind regards,