I think Klipsch gets a bad rap. I have several of their earlier models and never felt the high end was too harsh or overbearing. I've worked for both CBS AND Sony. At CBS I was responsible for setting up their A/B, QC and mastering rooms providing equalization on a substantial number of various player to beflat within .3db, so my ears are used to good sound. At Sony one of my responsibilities was to setup surround systems is their Media Test Center.
At home I have multiple systems including a Legacy Focus based system, B&W, Scandyna Minipod and a Klipsch Kg4, KV3 and RS-3 based system. My Legacy system costs around $10,000.00 and the Klipsch around $1300.00. Both are very nice soundings systems.
I wouldn't hesitate to recommend a Klipsch B2, C-2, RS-3 system. The B2 sound well balanced, image very well and fill my 12.5'x25' very well without straining. The Kg4 system sounds a little warmer and full bodied, but for the money the B2 system should suit your needs. I'm not sure where the Klipsch' get their high-end harshness reputation, unless it's from their more current lines. I've never experienced it. I really enjoy my Klipsch speakers and recommend them without them without reservation.
The B2s can be found used for about $125-$150/pr
, the C-3 for around $100. I tried several surrounds with these including the RS-3s, a pair of Emotiva ERDs and even another pair of B2s. I found the RS-3s to be the best match, but the others do an adequate job. I don't think you'll find the system to be lacking. Buying used will same some money and you won't have to worry about break-in. If you don't like them you can always resell. They hold their value very well. I paid $530/pair for my Kg4s. I still see them on eBay going for $350+.