Right, I assumed that you were talking about a pro installation. I didn't think we were on pace for a multi $1k experience, but I could not agree more. In the same way you could make a single channel system and emulate that kind of setup and keep the price reasonable. If I took price out of the equation (for me, off the shelf stuff, not the moon), I'd say get a Distressor, a Summit MPC-100A (ok, a pair), and an Apogee MiniDAC with Firewire card and call it a day. I would never resolve the benefits of an upgrade from that. Throw in a pair of Neve strips and you have the ability to record everything from a Tympani to a pennywhistle in shocking detail.
If we are still talking entry level gear then my opinion is that the current setup has potential if you get down with gain staging and post processing. Unless the device is broken you can record a good direct or mic'd track without much outboard. We never talked about what platform or DAW here. For instance, I use a product called RAX to set up effects chains in plugins, and to handle MIDI, and set up effects chains in that, previewing them as a work. Just the effects in the base GarageBand install beat most rack effects units by a mile. If I like the setup I save it, then I route the audio to Audio Hijack and sample it. I have a full blown DAW but this setup is a lot easier if I am not specifically multitracking. I can save effect presets and then load them in the DAW later.
I use Live and I'll use it if I need Live's tools, or am working on a multitrack. I love it, but that overhead can be a drag.
Not to rant, well, to rant, I keep in mind that most of the world class recordings we hear were recorded on the audio equivalent of the bronze adze, and in some cases I'm being generous. Apply that level of 'do the most with what you have" and the sky is the limit.
My rig: MacBook pro, NI AK-1 Interface, MOTU 896HD, Rubicon 5a Monitors, Live7, Gllyph GT050, GBand, RAX, Audiofinder, Stuff....