Do we really need anything more than 8" woofer and 1" tweeter for medium size room?

Inna

That is the key isn't it. The goal for  me is to enjoy the music. To hear a high resolution system with no edge, no noise, not analytical and produced in a way that is sounds like it is playing music for me and not just a big expensive PA system. Make the music accessible.  

Get yourself a pair of these... and... you'll end your search and your questions.  

Very few speakers sound better at less than 10+ times more money.  Truly phenomenal sound, which rivals the best there is.  Not my opinion - the opinion of many, many others who've sold their "high-end" speakers and replaced them with these.

http://www.wavetouchaudio.com/GT.html

http://www.stereotimes.com/post/wavetouch-audio-grand-teton-loudspeaker

Though, I agree with them.

Would I rather have the top of the line Nola's, or GamuT's - sure... but... not at their lofty prices.  

Only experiencing them will convince you... but, you will be convinced.

Whatever else they might be, they won't do bass. Without sufficient bass no speaker can be called phenomenal. With a pair of great subs, then it may be quite a sound, I don't know.
And we are not talking about prices and value, cost is no object in this discussion.

But since you mentioned monitors, I read that LaHave speakers, I think I got the name right, from Canada sound extremely good, but again not enough bass. Bass is the most difficult thing to get right, as I understand it. Not that the rest is easy, it is not.

Inna

What is sufficient bass? Will the room vibrate? Will it be lightening fast? will it be fat and slow?

For me it just needs to be satisfying, I am not trying to impress anyone I just want to enjoy listening. Bass is so tied into to room response that no full range loudspeaker can provide the maximum amount of bass that room can handle without the danger of going over the top. 

So a bass that satisfies is what I require to describe a speaker as  phenomenal, if it has phenomenal mid-range and highs and is cohesive and fast and disappears.