where best to spend $2-3000 upgrade dollars in my system

@mattmiller 

thanks for the suggestions on cables. I do know cables can make a big difference.

I do not feel like my system is broke at all but always interested in tweaks and upgrades which may be that "bit of magic".

I'm going to look at room treatments.

for the room questions/comments, my listening room is 12x12, laminate floors with a large rug in the middle, wood paneled walls, plaster 9' ceiling.

Everyone's preferences (I repeat, everyone's) in speakers will be different.  I think they inspire more loyalty and dislike that any other component.  Ask a question on the internet, and 12 people will reply with 17 different answers.

That being said, since you asked, my own personal "favs" are ProAc, PMC, Spendor, Vienna Acoustics, Silverline.  And given your previous experience with Klipsch, I strongly recommend you take a look at Spatial Audio.  Their M3s can be had, used, in your price bracket.  They might be just the ticket.

Yes@jadedavid,

I used to have the Cornwalls in a 16x20 room with carpet and upholstered furniture and a 10' ceiling. they performed better in that room without a doubt.

@twoleftears 

I did some research on the Spatial M3's. They sound interesting. I am going to try and find somewhere to audition them...probably have to drive to Chicago.