Generally, no, Onkyo speakers aren’t very good. They are an electronics company and they do make good receivers though. You said you like Onkyo, so waiting for a good deal on an SR607 might be a good idea. Right now I think it goes for around $400. Check out other brands like Denon, Yamaha, Marantz, Harman Kardon, Pioneer... Besides, there aren’t any HTiB’s with floorstanding speakers so you’d have to buy separate if that’s really what you want. We can talk more about receivers if you want but it's usually best to get an idea of the speaker situation first, then pick the appropriate receiver to drive them.
By the way, your JVC receiver/DVD player is probably closer to 20 watts...or less. Don't get too hung up on power ratings, they're usually very misleading.
The two speaker lines to look at on a budget, if you want floorstanding speakers, are the Polk Monitor series and the Infinity Primus series.
They both have surrounds you could mount on the wall.
The lower side of the Primus series, with floorstanding speakers, is like this:
I actually only had a brief experience with the Infinity Primus series and haven't heard the Polks, but I've read they're pretty good too for the price. The Primus stuff above would come to about $500 so I would consider just getting the speakers and buying a quality subwoofer later when you have the extra money (with either the polk, infinity, or whatever). A respectable sub is only about $250, a little more if you want something great - and it doesn't have to come from the same MFG as the speakers. If the receiver is about $400 you're about at your max with either...but it would still blow away any HTiB and last a lot longer.
If you have lots of patience you can check the Harman Audio store on eBay for great deals on refurbished Infinity and JBL: http://stores.shop.ebay.com/Harman-A...0Q2em14?_pgn=1
They don't have much at the moment but they update the availability quite often.
A Polk set up would look something like this:
Monitor 50: http://www.newegg.com/Product/Produc...82E16882290013
Monitor 60: http://www.newegg.com/Product/Produc...82E16882290017
Monitor 30: http://www.newegg.com/Product/Produc...82E16882290094
I believe you can get by cheaper with the Polk. As far as comparisons between Polk and Infinity…you’d have to figure that out yourself. I like Infinity but I’m biased.
It should be easy to find a store that carries either brand so you can look and listen, then compare the prices online. Either speaker is/has been popular so it *shouldn't* be a problem finding a pair to add in the future for 7.1 if you wanted, maybe.
If you want to get a little crazy and move up a level for just a bit more $ look at the KEF IQ series that has been on closeout for a while - good prices:
It's over your budget by a few hundred but, hey, it's not my money
They are nicer (in other finishes too) and I can see them lasting good long time. The good news is that speakers don't obsolete like electronics. Think about it, read some of the reviews. If you actually decide to go that way there are other speakers in that price range to consider too, it never ends...
Really nice sounding, looking speaker - IMO: http://www.saturdayaudio.com/picturepages/kef_iq5.htm