You should be able to get Paradigm inwalls for $1200-$1500 I would think.
My neighbors use these and they sound good.
And as far as quality of inwalls it's just like anything else how much do you want to spend.
We use James Lounspeaker and I can tell you these are great speakers and I would say no sacrifice of sound quality. IMHO
Denon X4000, SC-91, VSX-51,VSX-81 Pioneer Elites and Denon 1611
James loudspeaker inwalls main and future theater
Other speaker zones DefTech, Polk, Russound, Boston Acoustics