replace a full Cello System?

an open question, and your comments are highly regarded...
I have a family friend with a Cello system (Palette, Performance II Amps, PS, Stradivari Speakers, strings). Its a monster system and she likes it. However, she has moved and believes the system is too big for her now. Given the current quality of her gear, can anyone suggest a 2009 approach to the following listener needs...(I know its subjective and apples/oranges, but please humor me)

- full sound, high definition
- power not as important (small apartment)
- speakers can't be huge
- she likes the palette, is there another pre that has parametric eq out there?
- CDs will be primary source, need input for one or two more sources in the future
- need to be able to pay for the new equipment with the sale of the old (preferably with money to spare)

I'm afraid I've been out of the game so long I'm not sure of a starting point. Any suggestions toward a solution would be helpful. thanks.
The connection between the Palette and the amps is balance Fisher connectors (she has interconnects). The Palette also has an input for Fisher which is notable. I have read the Fishers can be terminated with XLR on the other side (the pin out is the same). I was thinking Totem would be nice, but not sure of the amp either. Her needs are a fraction of the equipment's ability, and always thought the two should be matched.
Her needs are a fraction of the equipment's ability, and always thought the two should be matched

Then sell it all - what a waste of good equipment - sell it to someone who can appreciate it for what it is and get something aesthetic looking that matches the apartment decor. Sonus Faber comes to mind - beautiful cabinetry. Sounds like this stuff came from a divorce or husband passed away perhaps - nobody who carefully selected that kind of gear/system would think to sell it all and then ask someone else what they think they should buy in order to have money left over...that is no audiophile kind of talk.
For classical music I would suggest a Tannoy TD8 or 10 speakers. Modern sleek design, very nice sound, and easy to drive. Much more dynamic and lively sound than the similar sonus faber Cremona.
New or used? If Agon bluebook is correct, it should yield above $30K. She can definitely put together a good apt system for that kind of $. I'm thinking a good integrated like an ARS or VAC or Jadis if tubes are OK, ASR or Goldmund for SS. Does the budget need to cover a CDP?
I agree with Shadorne - there is something about this situation that doesn't add up. Anyone who had personally selected this gear for their own musical pleasure would not be asking a family friend for replacement suggestions. They'd be out selecting the new round of gear themselves.

Besides having possibly acquired it through divorce or death of a husband, another possibility is she was someone with a lot of money and it was selected for her by a high-end store (in much the same way some wealthy people are told which artwork to buy to impress others.)

If she is driven by sound quality, she'll need to hear the replacements herself. People trigger off different aspects of sound (just look at the debates that take place here among the enthusiasts) and the qualities that send the family friend to nirvana may do nothing for her. If she is driven by decor, she'll need to see the stuff in person. If she is driven by status, the question then centers around whom she is trying to impress.

Until the mix of those influences is clear, any suggestions are simply shots in the dark.