A real home theater system with a receiver, speakers and powered subwoofer is always best. A built in Blue ray player will have a shorter life than the rest of the system so a separate one is best. No reason to consider a DVD player since all BD players will play DVDs too.
At the low end Onkyo has some nice packages that can be upgraded. If you budget allows you can choose each component separately. What you have to choose from also depends on your country.