Nice looking room you have there. Here are my 2 quick picks in that price range. If you listen to music and like warmer sound, option #1 would be better. Less $ for the speakers, as they just got discontinued, but your receiver will struggle to reach higher volumes. If you want to keep your receiver and save some cash and want great HT sound option 2 is a great choice based on how frequently they're recommended around here. But I;ve never heard them.
Option #1: If you could get your hands on a more powerful receiver somehow (hear me out), I would recommend 2 pairs of Wharfedale DIamond 10.1 and a 10.CS Center. That will put you right at $997 from Music Direct with free shipping. Wharfedale Diamonds sound warm but clear with an awesome, lush midrange. Very smooth, non-fatiguing sound. They are very,very popular in the UK and Asia, but are a lesser known brand in the states due to a screw up by their marketing team a few years back. I use a pair of older 9.6's for a 2 channel setup and they are pretty awesome for the price. You can get a Pioneer SC-1222-K for around $600, or if you don't mind used an SC-07, SC-25, SC27, SC-35, SC-37 can also be had for around $600 and will get you much higher quality(better dacs, Bang and Olufsen ICE Power modules, as opposed to proprietary Pioneer class-D), albeit older receiver. I'm only recommending Pioneer because they have the most powerful amps, dollar for dollar, and are capable of handling 4-ohm nominal speakers (Wharfedales are 6-ohm). Sell your Denon for $150-$200. Total out of pocket cost~ $1397-$1447.
Option #2: Ascend Acoustics CMT-340 SE pair, CMT-340 SE center, CBM 170 SE pair $1216 shipped. Use your current receiver.
If you can sell your BIC speakers, option 2 would probably put you under $1000 total out of pocket and option 1 $200 more than that....