I wanted to report back with an update. My receiver (Yamaha RX-V375) and the P163 speakers were delivered yesterday and I managed to set everything up properly. Currently I have a 5.0 setup with the 2 P163 speakers as the Front speakers, and a Logitech z-5500 center and Surround speakers/tweeters.
Fronts are set to "Large" while the rest are set to small. Upped the levels on the center channel by a bit after YPAO and crossover is set to 160Hz (chosen by YPAO but makes sense due to the limitations of the Logitech speakers).
Music: I am really enjoying listening to Music on the P163s! I use Foobar with WASAPI to make use of Windows exclusive mode to essentially pass through the audio stream untouched to the receiver. I listen to the stereo music "STRAIGHT" so that it is only being played on the Infinity speakers. The music sounds wonderful and the bass from the speakers is punchy though obviously a bit lacking in the lows. Still, given the performance so far, I am in less of a hurry to procure a subwoofer for my system. As expected, the music sounds quite terrible if I use any DSP to send the Stereo music to all 5 channels. This is entirely due to the difference in audio quality from the Infinity speakers and the Logitech speakers.
Movies: I was expecting this to be pretty bad due to my crappy Logitech center speaker sitting in between the two Infinity speakers. However, after upping the levels on the center channel, things sound pretty good. I can still definitely discern where the center channel is lacking in comparison to the Infinity speakers and at the moment, I am going to prioritize finding a good deal on a center channel speaker over buying a subwoofer. However, the lack of a subwoofer is a bit more noticable when viewing movies since the Infinitys can only do so much when it comes to bass.
Questions: Now that I have had some time to play with my setup and think about upgrades, I had a questions going forward:
When I purchase a capable sub-woofer, I am a bit unsure about how to go about setting the crossovers. The Fronts (which I would set to "Small") ,can go down to around 49Hz according to the Infinity specs whereas the Logitech tweeters which will remain as my surround speakers for a while to come, start to fall off below ~160Hz. However, I don't want to have such a high crossover since I would prefer having the woofer cover the 20 - 60/80Hz range and the Infinitys covering the rest. The problem is that my receiver only allows a single crossover setting that applies to all Small channels. So if I set the crossover to 80Hz, the Logitech surrounds will also be driven at those frequencies and it can have adverse effects on the output of the satellite speakers.The other option I can think of is to set the receiver crossover to 160Hz, Infinity speakers to "Large" and then the subwoofer crossover to 80Hz, That way the subwoofer only plays upto ~ 80Hz and the Infinitys fill in the 80-160Hz gap. However, the only problem with this is that the Infinity speakers would be driven full range which would negatively impact their performance in the mid/high range and I would also have both the sub and the Infinitys producing bass in the 40-80Hz window. I'm not sure what is the best option and if there is any better option out there for this situation where I have multiple speakers with vastly differing frequency response.