Disappointed w/ Klipsch Heresy III. Now what?

I'd be very grateful for some help with a quandary.

I recently replaced my Ohm Walsh 1000 speakers with Heresy III speakers, running two-channel from a Rega Brio. I was pretty excited about the Heresy IIIs based on reviews — they were efficient, so my 35-watt amp would get the job done; they were supposed to have real punch in the low mid-range, so I could hear the upright bass clearly; they reportedly had excellent imaging; and best of all, they were supposed to sound great at low volumes. They are also indisputably beautiful, which was an important factor for my wife. (The Ohms are elegant, but you have to be an audio lover to see their beauty.)

I set them up, and . . . not so bad, pretty good. Especially loud. In fact the louder the better. Crank them up and they sing. But loud is not really an option with a new baby. So how do they sound quiet? They sound like the band is trapped in shoe box. Really in two shoe boxes because the L and R don't merge that well. The sound stage is tiny. All the detail is gone, the joy is gone. They are no fun at all. Music just seems like a bunch of noise.

But I want to believe! I want to make these speakers work. So I am faced with a quandary. I could:

1. Buy stands, a subwoofer and a tube amp, all of which people in various forums have recommended to improve the various failings I hear now.

2. Replace the Rega with something much more powerful and pull the Ohms out of the closet. (Suboptimal because it will make my wife sad because of the aforementioned perceived ugliness.)

3. Just start all over again. Different amp, different speakers.

I'd kind of prefer number 1. But I don't want to end up with a bunch of stuff designed to solve a problem and then not have that problem solved! (And I'd also just as soon avoid getting a subwoofer.)

Final note. Positioning is an intractable nightmare. It is the one thing that I can't really change, because of how our living room is layed out. It is obviously a big problem though. The living room is a big rectangle, 18 x 40 feet, and the speakers are near the corners of the 18-foot ends, on either side of a couch. I can move them around — closer or further from the couch, closer or further from the wall. But I can't raise them above the height of the couch or move them out in front or over to another wall. That discussion went nowhere!

What should I do?


tls49, I'm using a Dragonfly red connected to a Macbook on Ethernet with a Roon server. The mini phone connection is obviously a major weak point, but my HRT Streamer with RCA connections sounds even worse. (The Dragonfly is a great little DAC.) But you raise a good point. The sound is so boxy that it is possible that I am just doing something wrong. The phase is right. (I switched and it sounded much worse, so switched back.) Maybe there is some kind of power load problem, like the Rega Brio is confused by speakers that are that efficient? (It's usually somewhere between 8 o'clock and 9 o'clock on the volume knob.)
I'm still thinking that speaker break in is definitely a problem. I worked in the audio/video industry for over 25 years and have experienced speaker break in with many brands, Klipsch being one of them. Most will say 200 hours for break in and that will hold true for many speakers, however some will take much longer, 400-600 hours, and as I previously said, the Klipsch Heritage Series falls into this category. Before break in, a speaker will sound tight and congested. Try to be patient, and play the system as much as possible, even when you're away from home.

2nd the Harbeths . Completely satisfied 1 yr now with Compact 7ES-3s . Still love the traditional look. I had Fortes in the late 80s- good looking but harsh sound with state of CD/digital back then.
You never did mention that I saw what kind of music you listen to? Some people say a good speaker should play equally well everything but frankly I find that to be pipe dream. you wouldn't buy Sonus Faber to listen to metal for instance. 
Nor do you buy Klipsch to listen to opera, I guess. Speakers don't play equally well everything, what "some people say" is puzzling.