Have two HomePod mini in stereo and they have been awesome for watching stuff.
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Just about any powered pair of speakers will sound better than homepods or a soundbar. You could get a cheapo pair or something like SVS wireless prime or Kanto TUK. This would also use of a subwoofer if you should ever want one again.
Like others have said, Sonos arc plus a sub and two surrounds is a good bet. That’s what I have with a setup similar to yours
I honestly have a HomePod (Gen 2) and Sonos + IKEA Symphonisk setup and it's incredible. The Symphonish is not the top of the line for Sonos, but you get solid sound from them. I have them on bookshelves on either side of my couch and then the HomePods are in front of the TV
I have the Sony HT-A9 system and I was blown away by how amazing it sounds I’ve had Dolby atmos for a good few years on many other systems and this is by far the best sounding so far. It blows the Sonos arc out the window.
Thank you all for your comments and ideas. Just wanted to share that I’ve discovered the Sonos ecosystem thanks to your comments and I’ve decided to purchase a Sonos Beam Gen 2. I will be improving my setup as I go with the Sub Mini and the One’s, presumably next year already.