As you mention there are a variety of things to look at, your budget will dictate what you should look at, also what do you want to do? Just replacing the old bulky system with a new "stereo" system isn't too complicated, but it is different than upgrading to a surround system that you want to hook up to your TV too. (a surround will play cd's and AM/FM, it also looks after the sound from your video equipment too) So, a little more info, and you should get answers that will be more specific to your needs.

To start you off, if it's just stereo you want, just newer and smaller, you could look at the Linn Classic music. This is a small but high end AM/FM cd player, amplifier all in one nice cool looking package. Not cheap ($2500 Can.) but great quality. Add to this a good pair of speakers and you have yourself a very nice package.
http://www.classik.com/