Thanks for the response, guys. I have a Rogue Sphinx (100 W/channel) as an amp and Zu Omen speakers, but these are in a smaller room. Moving everything to the larger room is the plan. This will be a two channel system but I'm open to adding a sub or two. Although my budget is $3500, I'm adding $500/month to my audio savings account, so I can eventually spend more on speakers.
The idea of higher efficiency speakers makes sense, as does having them be fairly large. Unfortunately, my wife doesn't want anything overbearing.
For serious listening I'll be about 10 feet from them, while the max space between speakers is about 10 feet. At other times, I may be well off axis. I listen at lower levels but occasionally like to turn the music quite loud. We listen to a mix of orchestral, opera, rock and saloon singers (Etta James, Sinatra, etc.), so piano and vocals need to be done well.