KEF LS-50 with a SVS SB-1000 is excellent in a small room @
about $2K. My room is about the same size as what OP proposed. I compared to my Pioneer S2EX ($6K) and the KEF system is much much better at least in my small room. I recently bought Tekton Impact Monitors so I could eliminate the subwoofer but they are not set up yet. I was told by several people that have heard/owned both that the Tektons should be much better than the KEF system in my room.