A lot of gear down here has taken a tumble or two in the quakes, or, in some case, filled with plaster dust from constant shaking.
These factors shorten the lifespan considerably, which definitely sucks.
I still think you can get a new receiver with 4 x HDMI inputs and a nice set of bookshelves for under 1k. And re: subwoofers, be careful you don't get a one note blunderbuss. Make sure it's musical (it's going to be doing a relatively decent amount of work if your front bookshelves can't go down too deep... and if it's only performing well in a limited range, it may detract when you listen to music than add to what you're hearing.
Having said that, I have a 2.0 system right now and feel no need for a centre or a sub at all. Then again, it's predominately a music based setup that happens to be looped to my Sky box :-)