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Could you give some impressions of the middies? How was their build and sound quality? Did they not preform as expected, or did you simply realize you needed more for your space?
They were excellent - for their size. Really it's simply a matter of physics, there's just no way the middies can deliver the same range & stage as the larger L2s (or L3s). Sometimes, especially with speakers, size does matter. They just couldn't fill the space adequately (about 12x12'). They did sound VERY good, especially for the price & their size. If I had the room I would have kept them as surrounds (I went with Orbs for the WAF issue). The level2s just simply fill the room better & they give a fuller sound, given the size that's to be expected.
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I would like to hear from you and the Level 2 as well as I have never heard them before.
Well I don't have your background.....but....I can give it a "shot"

My previous setup was a pair of BA CR9's - I've used them for several years & like them quite a bit. They present a very detailed sound with a nice sound stage. Nothing about them is great, they're just a solid pair of speakers.
L2s - when I first got them I thought they were "dull" in comparison. Not a knock, but the CR9s are much brighter. Since I've been using them I've come to like the warmer tones of the L2s. They present a good sound stage & while the tweeter isn't quite as bright it does a great job. The L2s are used exclusively for HT duty (& the CR9s as 2ch music) in this role they are excellent - they can fill a decent sized room with sound no problem. I use them with a less than opitmum 65w/ch @6ohm reciever (Onkyo TX-LR552) = no problem driving them to levels beyond my ability to tolerate. They pump out a suprising amount of bass & the tweeter provides detailed, abiet warm, response. After about a year with the L2s I find when listening to music I find the CR9s to be a bit bright, though they do present a bigger soundstage. Fit & finish on the speakers is excellent - they really look nice. A concrete example, the opening music from CSI (orginal). This song by the Who sounds exactly like I remember it when I was a kid - nice warm hard rock sound, like the old vinyl days. Hits hard & nary a sign of "digital" edge or brightness. Or another, the IPOD commercial w/ the song by the Jetts (sp?) - the guitar is really "raspy" & sounds excellent.
(told ya

only use them for HT)
Would I buy the level 2s again? Yep, in a heatbeat. I've haven't heard anything that comes close in that price range (& it beats quite a few many $$$$ higher).
Caveat - if I had the room for the 3s I'd likely have gotten them, the larger soundstage from the ribbon tweeter would be very nice.
I've pestered Chris with many a question, among them using various HTD speakers - he's pretty much said that ALL the HTD speakers are similar in tone = you can mix & match as you need (though matching is the optimum).