I've decided to repost this under the Done For Now forum as my wife and I are too busy enjoying our new daughter for me to think about upgrades.
I don't really get to listen critically much, and it's more to listen and to introduce my daughter to all the great music I love. So far Haydn string quartets get her smiling.
I can't really imagine where I can take this system without spending alot on a major component. Short of buying a house I can't do anything to the room and I think this is the main compromise anyway.
It's been a long road to stop here but what a fun and educational one it has been. Thanks to all.