Welp, a couple of things kindof jump out at me from what you said. Let me run them down a little and see if I understand what you are saying...
</font><font color="blue" class="small">( 1) rec room )</font> - <font color="green">higher ambient noise, other concurrent activities </font>
</font><font color="blue" class="small">( 2)...play cds, mp3's and a tuner )</font> - <font color="green">basic functionality</font>
</font><font color="blue" class="small">( 3)...everything built in)</font> - <font color="green">simplicity </font>
</font><font color="blue" class="small">( 4)Budget...$500 and $1,000)</font> - <font color="green">self explanatory</font>
If I'm understanding you correctly, the type of setup that comes to mind has 3 components - a receiver, a cd player, and 2 speakers. Now, yes, there are "all in one" packages that have this functionality, but even though I have owned stuff like this in the past, I have never been a big fan of it. Too many reasons to go in to, but it boils down to you'd be better off selecting 3 higher quality separate components than an "all in one" package.
Before I say much more, if you could confirm/invalidate my assumptions/understanding it would help me from going down the wrong rabbit hole. /forums/images/graemlins/wink.gif
Oh, to answer your question about "better quality receivers now?" - yes, substantially in certain brands. While most all of them have improved sonically and in features, not all have improved in the other areas that matter (i.e. reliability). And unfortunately, some brands have slipped in quality quite a bit over years past - not uncommon in the audio industry, just kindof sad to see it happen.