The 5 disc DVD player integrated into the receiver portion is going to sap power from your speakers, taking away from the overall sound. The HTiB speaker quaility is usually nothing to brag about anyway, and if it has a passive subwoofer (most HTiB's do), then your sub isn't going to be what you're probably expecting.
HTiB's are 'dorm room systems', not meant for a full-sized living room or den. If you're in a public place like a dorm room or apartment complex where you want sound that's better than your tv speakers but don't want it to rattle the walls or wake your neighbors, HTiB's are okay. If otherwise, building a system is a MUCH better way to go.
Edit: Onkyo is a brand Circuit City carries, roughly comparable to Yamaha (Best Buy's alternative to Onkyo). I would go with either Onkyo or Yamaha before going with Sony. Sony has great video, but imo sub-par sound compared to the rest of the field. For the price, though, it isn't a terrible purchase. I'm just a little picky about my sound.