The Henry Kloss Model One Table Radio is probably what you want.
It has now been put back into production as the Tivoli Model One Table Radio, and is available from Amazon for only $145.
In addition to having a very good AM/FM tuner, it has a very nice speaker and amplifier and an external 3.5 mm input jack for other music sources. You can plug into it and get nice sound.
It also has a nice-looking wood cabinet.
You could also just plug your cable into a pair of powered speakers such as the Audioengine 2 speakers, but the volume control is on the rear of one speaker, which might not be convenient. They will easily fit your space and cost $200. I have a pair connected to my computer, and the sound quality is very good.
My wife has a Nakamichi TM-1 radio in her room. It is out of production, but if you could find a used one, it is probably the best unit of this type ever made. Maybe one is on e-bay?
It has an excellent tuner, a true high-fidelity power amplifier, and an excellent 5-inch speaker. It cost around $300 when they were making it, plus there was a matching second powered speaker as an accessory for another $150 if you wanted stereo.
Update- I just looked on E-bay and there is one available for $125 complete with the companion stereo speaker. Each unit is 10.5 inches wide, so you wouldn't care about the second speaker unless you have a another place to put it somewhere in the room. In any case it is a very fine single-channel unit by itself and highly recommended.
They have it listed as "Nakamichi Clock Radio 1".
Edited by commsysman - 8/9/12 at 4:58pm
Originally Posted by index2020X I realized that I spend a lot more time in the bedroom listening to music ... far more than the living room where I now have my nice new B&W speakers. So, that means it's time to upgrade my years old Bose Wave Radio II.
I'm looking for the highest quality audio that I can get at less than $2,500 in a form factor that does not exceed 16" (width) x 10" (depth) x 8" high (these are my "architectural constraints"). Does not need to have a CD player and/or radio since I feed my music via a 3.5" cable from various sources. The room size is approx. 15 feet x 20 feet. Any recommendations will be deeply appreciated.