What would you do? - 3 in-ceiling speakers or L/R (no center) in-walls

How about a combo - I did in-walls for the L&R and in-ceiling (with angled woofer and directional tweeter) for the center. It's not perfect, but I'm very satisfied with the high quality speakers I chose.

This is definitely a better approach than either of the original suggestions...

...but the situation begs the question, why did you design an entertainment wall without room for a centre speaker?

I know in my case I originally had a center speaker mounted on the wall above the TV before I upgraded my system and then moved the center to the ceiling since I plan to add a PJ and drop down screen someday. I do not want to use an AT screen given my ambient light issues and desire for good picture quality.

That's a great suggestion. Sonance, from my recollection, have one or two in-ceiling speakers with directional tweeters and angled woofers that have to be set about 3 ft away from the wall because they use the wall to project the sound outward. You could also do something like DefTech in-walls for the L/R and then something like a Mythos center that lays flat on the wall (not the slimmest but not the bulkiest) as opposed to having to be in-wall.

SnowMAV, I would not recommend mixing speaker types/brands in the front stage. You really want to have a consistent "timber match" by selecting speakers from products consisting of the same materials/build quality. Timber matching becomes less important when choosing surrounds.

I know that's the general rule of thumb but I will say that I've heard it mixed and as long as its a quality speaker it doesn't sound awful and depending on what you mixed its only slightly noticeable. But you're right...

OP, what is your budget? Not all in-ceiling speakers are built the same and some can give you better sound than others. I would recommend looking for in-ceiling speakers for your mains that have an angled woofer/tweeter design and not just the pivoting tweeter design:

Something like one of the below:
http://www.definitivetech.com/products/uiw-rcs-ii

http://www.triadspeakers.com/products/icb8lcr.html

http://www.episodespeakers.com/product/49/Episode-700-Series-Home-Theater-In-Ceiling-LCR-Speaker


They typically cost more, but with in-ceiling LCR speakers, you often get what you pay for. You can probably find the Deftech's online for about $350 per speaker if you look at the UIW RCS III model.