Summary: This is really great system...if you don't want/can't have a true surround option. I'm not that fussed about whether it simulates surround or not...I don't really think it does..and my room is not the right shape anyway...but if you want great quality sound with a good spatial spread, then this is a serious upgrade from the speakers in the TV (I have 42" Viera). I was comparing to the Philips, but I preferred the sound of this, the size, and the HDMI inputs.
Pros: Great compact size, strong sound performance, great interfacing, works with VeiraLink...so can ditch the remote (which is admittedly exceptionally ugly)
Cons: Ugly remote...which you don;t realy need if you use Pana or Tosh TV