Elitist audiophile whine is funny.
This system isn't manufactured and marketed to be the end-all-be-all of sound quality. It's manufactured to give you a cheap alternative to TV speakers.
Yes, it claims to be 1000 watts, and we all know that it isn't. But then, those sorts of numbers are always inflated or unnecessarily emphasized for marketing purposes. This is nothing new.
No, this system is not going to hold a candle to any of better and more expensive systems out there. But then, it's not intended to be anything great. This is a system for a small room, or a dorm, or an apartment, or a bedroom, or a garage, or a spare system to keep around, or whatever.
I bought this when it was offered on woot a couple of months ago. I live in an apartment, and the fact that this system can't knock the walls down is not a problem. It's still plenty loud enough for movies, or my Xbox, or whatever else I want it for, and it sounds pretty good to boot. If it only ends up lasting a year or two, I will still be perfectly satisfied with what I spent for it. And now, it's $10 cheaper. If this system fits your needs, then I'd recommend it. If you need something better, then go find it, and stop whining about this system not living up to a standard it was never meant to live up to.