Sometimes overkill is great, sometimes, it is exactly that, sound bouncing off walls make it hard to tell when you're getting flanked. I run a PS3 slim which goes into DTS for SOCOM 4 and Dolby Digital for MOH 2010 and Mass Effect 3. The AI in SOCOM 4 is ridiculous, so I have to dynamically position squads in the middle of a fire fight,
I love the dynamic intro to ME3, but I hate getting flanked so I keep it down to a civilized 70 - 80 db, I'm around 10' on axis from my center channel a Klipsch Quartet. I tend to pickup the clues and I hate using headphones, only Klipsch can really delivery the dynamic range and low end necessary for games.
A lot of old Klipsch boxes dating back to the 1980's and a blend of modern digital technology for gaming.