If you can't go any wider at the front of the room, then getting a new screen, if your current screen is in good shape is pointless.
You can mask the current screen down to 16:9 aspect ratio and get a new projector and call it done. No new speakers, no new screen.
The ONLY reason to get a new screen would be if you intend to get rid of the art at the front of the room and move to a proper 16:9 setup. Movies or not, your room has plenty of height for a 16:9 screen and not enough width for a full on 2.35 setup, so stick with 16:9.
The initial installation, if done 20 years ago, completely failed to account for 16:9 which already existed and was clearly the future of home theater. A shame if that was the case. That said, I dealt with many 4:3 setups from about 25 years ago that needed to get a 16:9 upgrade. All of them were using CRT projectors though and not digital projectors. Especially digital projectors installed with severe keystone correction in use.
Yes, I would keep the AT screen.
If you are looking for a full upgrade, then remove the artsy corners and get a wider 16:9 screen in there. Otherwise, just reframe the current screen to a 16:9 aspect ratio. The ONLY reason to get a new screen is to get more width, which this room desperately needs.
Speakers can be a lifelong purchase. Good speakers from 20-25 years ago are STILL good speakers! Same thing with good amplifiers. The technology is a bit different today, but it isn't vastly improved. Things still sound really good? Great! Keep them!
Yes, you will need a 4K capable A/V receiver. You will need 18Gb/s HDMI cables. You will need a few 4K sources so you can enjoy it all.
So, that's like $1,500 to $3,000 for a decent receiver. Maybe a bit more if you get a bit more serious and get a separate amp.
Cabling should be under $100. If the receiver is near the projector, then it should be under $20 for 6' or shorter HDMI cables.
Sources should include a decent UHD Blu-ray Disc player ($100-$500) a Roku Ultra ($100) and whatever live TV service you currently use with a decent cable box.
The projector can be a JVC (I would skip Sony) which is going to start at $5,500 or so. But, the Epson 5050 is a great choice and the lens shift of the Epson may allow for the exact placement you want to get without the tilt and keystone correction of your current bastardized setup. Yes, that tilt of the projector is hurting a lot of people here!
Go wider or don't replace that screen.
THIS SAID: If you are having someone specify a $4,200 screen, look at SeymourAV.com - Their Center Stage material with black backing is under $2K for the current width you have. Working things much wider, as you should, pricing only jumps to about $2,500. I know as a dealer, I make a bit of a profit on their stuff, so any dealer should be able to support this type of purchase. A $4,200 fixed frame AT screen is a pretty hefty money grab.
In reality, a Silver Ticket woven screen may be fine...
https://www.amazon.com/STR-169135-S...erticket+at+screen&qid=1571408668&sr=8-1&th=1
I'm just not sold on you getting a new screen at all if you aren't planning on redoing the front wall completely. That really seems like the first step. Even if it pisses you off that you should do such a thing.