What is the best speaker for a smallish room?

Um, yeah, you could probably get as good a results as any stereo set up using the near active Sonus Extrema's, yes! (I say near, as they use a avery simple crossover).
The catch would be to attain as good of a set up as possible
with the speakers and seat, and to get a Rives PARC in the mix!!! (mandatory, at the very least). You will probably like the sound.
I do like the Extrema's myself. They have better dynamics than the Merlins.
good luck

The Manger Swings look like a very interesting speaker. I did not know it, thanks for the suggestion. They remind me of the Reference 3a Veena, which is a speaker I am considering, together with the Thiel 2.3.

More genereally, two or three people sent me private messages recommending Reference 3a for a small room, particularly the MM Di Capo. I have looked at the specs, and the absence of a crossover is an intriguing notion. I may give it a try, although both Thiels and this Manger Swings are tempting.

kataro micropures are amazing!
i could not believe the sound..also
usher stand mount speakers are worth a try too.

I have been back and forth on this issue myself for about 12 months when I moved my system from medium / large living room to small (11x12) dedicated office / my room. Have tried mostly smaller stand mounts and some nice mids and highs but always missing the full range sound. Have just this week acquired a slightly used pair of Green Mountain Pico Executives and they are sounding mighty fine so far with only about 20 hours on them. I waivered between the Picos and Omegas with their small subs (cube) but in end went with Picos because they are reputed to have stat like mids and highs (I loved my old Maggies) but also small bass modules (think 5 inch drivers with top ports so don't have to worry about tight spaces). Full range music is back - oh the kick drum and bass guitar. Green Mountain has an updated version on the way but if you are in the $5,000 range they are worth checking out for your small room. Not much for WAF but heavenly sounds and can only imagine after I get them dialed and broken in.

Ladvid..I hear you about the WAF on the Green Mountains. I always read about the hype of the sound of this company but never heard them until RMAF last year. I didn't hear the smaller Picos but I did hear there larger floor standers and I remember finding it hard to leave the room. Thats when you know the sound is good is when you have so much to see at the show but somehow seem drawn to stay in a resilient room.