This question pretty interesting. It made me check what my actual expenses of equipment vs software is. I expected to be about 50/50 or slightly infavor of software over equipment. Fact is, it's not, I've spent nearly 2/3 in equipment. I've been buying a lot of albums and CDs in the last year, so this was a bit of a shock. I can't answer your question for you--only you can do that. But the question did make me look at my expenses, and I will probably be reducing my equipment expenses now.
New Music vs. New Equipment
I assume that many people are like me in that we are always looking to optimize our audio systems. Unfortunately, to do so can require spending thousands of dollars. Furthermore, when all is said and done, the system sounds better, but it's never going to sound like real musicians playing real music. At what point is it better to leave the equipment alone and instead purchase more music? As an example, will I be better off spending $2,500 on new bi-wire cables, or should I buy 125 (@ $20 each) new albums? The new cables have the potential to make the 2,500 albums I already own sound marginally better, yet 125 new albums should yeild some great music. Which way should I go?