Awesome - thanks for the pics. I have similar in wall speakers around the house and have an all B&W secondary HT in the kitchen. Indeed these are not up to the standard of your Watt Puppies but neither are they meant to be. Unotrusive and convenient still like the B&W in wals.
Have you considered acoustic treatments? - this might be your most bang for the buck considering the great system youu have already assembled....