In ceiling or in wall speakers are usually for home theater use, not audiophile (or even close) "proper stereo" use. Musac at best.
So unless you're going for a home theater surround setup, I'd go for a modest stereo receiver as you suggest, possibly with dual zone speaker terminals so you can use four speakers at once.
The Onkyo 8160 would be better than the one you suggested as it has wired and wireless (wifi) network capabilities. It's about $400 on Amazon.
Either that or step back to the Onkyo 8050 which has wired but not wifi capabilities.
I have the 8050 in my den for musac duties and it works fine at that level. My entire house has wired Ethernet so no need for wifi though.
Last edited by Darren Heal; 06-17-2016 at 10:10 AM.