How good would this home theater system be?

Honestly, nothing special. These bundled systems fall short overall - you can trading performance for easy one-box purchasing.

The weakest link on most of these name brand bundled "home theater in a box" systems is the speakers. By the time you tire of the poor sound and upgrade all of the speakers, you've spent quite a bit more money.

I recommend a basic home theater receiver and true component grade speakers. Even the most affordable small speakers from actual speaker manufacturers will sound worlds better.

I love yamaha receivers, but the speakers are not their strengths.

Below is an alternative that costs about $600. The speakers are by Boston Acoustics - a real speaker company. The parts are swapable with other gear if you want to upgrade or replace any part.