the drawback to that model is the weak sub. The subwoofer is passive. You will regret it I assure you. I understand you have a max of 400 but the ,ONKYO HT-S5200 7.1-Channel Black Home Theater System with iPod Dock, is only $30 over your limit. It has 8 speaker instead of 6 plus ipod dock.
The built-in blu ray is a downsize. The blu ray dont have ethernet for updating firmware.
Also integrating a player into a receiver is never a good idea. The high heat from the amplification circuit next to sensitive decoding circuit enclose in a small form factor. Furthermore, the player side will go bad alot sooner than receiver due to moving parts.
True we both went over but it's tough getting anything within that price range for a complete system that doesn't suck, lol.