Your fears are justified. In-ceiling speakers should be the last option for the front 3. Also, if you are going to go with Klipsch, be sure you have heard a Klipsch speaker first. Very controversial speaker, with many loving it's exaggerated treble, others hating it.
IMO, you should go with the 3 channel passive approach you originally envisioned. Yes, somewhat expensive, but that is the price you pay for the inability to place regular speakers in the room.
Triad, Golden Ear, James, Episode, Def Tech, KEF, PSB, Monitor Audio, Paradigm ... lots of options.
BTW, is that TV stand bolted to the floor? Looks precarious.
EDIT: OK, not a big fan of these speakers, however, if you can go with two "floorstanding" speakers to the sides of the TV, the ORB might just work for you. Can be purchased in a number of finishes (steel) and mounted to their tall stands, they would stylistically meld with the speaker stand you have chosen. You could also get a center channel and attach to the stand in some fashion, under the TV.
A better (but more expensive) option is the Gallo speaker. They have a stainless steel finish and tall stands that would look really nice with the TV:
Lastly, that stand is the reason you are having to jump through hoops for this install. Have you considered a nice credenza-like stand, so you can put actual speakers on it? Or a wall mount, so you can attach speakers to the wall?