I'd do the sound bar. Certainly better to look at than the wall plate currently showing between the TV and the mantle. Look at getting a three channel passive soundbar instead of a powered soundbar, which has lots of bells and whistles but poor sound quality. Then use a standard receiver to power the sound bar and the rear surrounds in the ceiling.
There are a lot of options from major speaker producers. Try to avoid the two or three inch "woofer" versions, as they will tend towards a tinny sound. See the options from Golden ear, Phase tech, Def tech, PSB, Paradigm, KEF, Monitor Audio, HTD, to name just a few. If you want perfect matching, Triad will make a soundbar specifically for your needs, including length and finish to match the TV. Mounted to the bottom of the TV, it will appear to be all one unit. You will need to have a subwoofer somewhere in the room, as well.
If you absolutely positively must use in-ceiling speakers, be sure you use angled speakers. Measure the angle from the speaker position to your seated ears. Now subtract 30 degrees (where most speakers maintain good off axis frequency response) from that number. The remainder is the minimum angle of the in-ceiling speaker to assure good frequency response at your seat. RSL has fully angled speakers with a 15 degree built-in angle. Paradigm and Golden ear have in-ceiling speakers with a built-in 30 degree angle. Triad, Sonance, and Def tech have options with 45 degrees built in. Do the math, so you do it right the first time. You don't want to be back here again in 6 months complaining about unintelligible dialog and missing frequencies.
In any case, "hidden/pretty" always costs extra. It's the nature of the beast.
It's a VIRTUAL channel unless stated otherwise.
Last edited by RayGuy; 02-20-2020 at 12:17 PM.