Sony dropped some big news at its New York event Wednesday night. It debuted the new DAV-IS10 DVD home theater system. What sets it apart from the rest is the size of the satellites. As you can see from the pic, they're just a few notches bigger than a quarter. The 5.1 system will debut in July. It'll also be able to upscale DVDs to near-HD quality. It'll sell for $799.
Part of the way that Sony claims to make these small satellites work is by having a 'two-way subwoofer', with an additional upward-firing cone driver whose job is to reproduce 'midbass'. The trick in this is how to make it sound like the midbass is coming from all around instead of only one source. Either that, or Sony could just be totally clueless and neglecting that part of the equation. At any rate, it's highly likely that the satellite speakers are cutting off somewhere around 300-400 Hz, with an enclosure that small.
I'm willing to reserve judgement until I actually hear this system and find out what it's capable of. I wouldn't expect it to totally revolutionize the way I experience movies.