I DISAGREE...I think if done correctly, you can gain a substantial sound stage for both music as well as home theater. However, no one here will be excited about what I am going to say, because it does not include Klipsch.
Do not get me wrong - I love the Klipsch sound - but only out of the Heritage series - when they built a great product. I have Hereseys and would never trade them. Having over 30 years in the music industry, I have yet to find a better value for sonic quality and impact from a stand alone speaker.
We built a home ourselves last year, and the Klipsch were relegated to the music room due to their size. We too wanted all house audio as well as 2 HT rooms. Our home is highly contemporary, so clean lines and minimal clutter is important. Initially we went out to audition what Klipsch made in in-walls, and were somewhat disappointed. After a few months of listening to others (Paradigm, Sonance, B&W, DynAudio, Niles, Cambridge, JBL, Triad, Atalntic Research, Polk, DF, and probably others), we just were not still happy.
We came across an industrial installer who also did high end HT projects on the side. His take was that all of these in-walls were made by primarily a few key producers. His theory to manage cost was to identify the primary source, then audition the primary sources best of the best. His result.......SpeakerCraft.
Many of you may not be familiar with SpeakerCraft, but they were basically the first guys in the business, give or take a few years. They have a tremendous line of in wall and in ceiliing speakers that sound fantastic. They do 2 way, 3 way, and I believe 4 way units for in wall. You have to hear them because many sound great even without a sub. The in walls have cross over switches which allow your to compensate for furnishings - what floor or bookshelf speaker has that? There are also models that have the entire speaker able to rotate within the enclosure for better dispersion. Also, look at the ceiling line called AIM - this allows you to actually rotate the entire speaker within the enclosure for precise distribution. I am using 3 AIM for the front channels in our hearth room with a vault ceiling, and 2 in the back. The sound stage is tremendous, and the equipment is virtually invisible.
As much as I love my Hereseys, the SpeakerCraft line is equally as good for the application I needed. They have a new sister company named Proficient, that also have some good products. Their top of the line items are fantastic as well - the lower end just a pricepoint category.
I would audition the SpeakerCraft and Proficient lines because if they don't do it for you, nothing will. Good luck, and let us know what you finally end up with!!