The walls and ceilings form a boundary you don't want to breach. They help limit sound transmission to other rooms, and when properly lined with nonreflecting surfaces they also help limit unwanted interior sound reflections.
If the satellite speaker is dipolor or bipolar (which means it has speakers on two sides) then it won't work well in the wall, and should be mounted inside the wall using brackets or speaker stands.
If the satellite speaker is a simple one with speakers on one side only, then it might work.
On to other ideas.
SPEAKERS IN COLUMNS
Most of this I made up. It is completely untested so if it doesn't work, don't be surprised. However it sounds reasonable.
Instead of putting the speakes in the wall, some people build columns (alias "pilasters") that stick out into the room. The columns should be inside the acoustic envelope defined by the the walls, and should be somewhat decoupled from them if possible by building them separately from the wall, resting them on a couple layers or roofing felt or rubber, and using flexible caulk between then and the wall. Build a really sturdy box that surrounds the speaker out of MDF or other heavy and stiff material. You probably should make it 2 or 3 layers thick with the layes glued and screwed together to make the box very stiff and heavy. If you didn't want to surround the speaker with sand, or have it rest on a bed of sand, you might try hanging the speaker inside the box with springs or better yet, bungee cords. This is just an untested idea, I don't know if it would work. The springs or bungee cords should have as little tension as possible so they are less likely to transmit vibrations.
Fill the empty parts of the column with something to limit sound transmission like sand or heavy insulation such as mineral fiber. Sand is better at limiting sound transmission, but can be messy and is very heavy.
Cover the column and box holding the speaker with acoustically transparent cloth.
To make the room look more balanced you may need to add other columns which don't have speakers.