Please recommend a top-notch bookshlef speaker

ATC 7s, Neat, Harbeth, Epos all make nice monitors.

For something completely different, if space is critical, try Audioengine 5s.

North Creek Kitty Kat Revelator. Made especially to sound best within three inches of the back wall. Tiny, wonderful speakers with amazing bass and midrange smoothness from top notch drivers and crossover components. The only thing you give up, with these or any other speaker placed back to the wall, is soundstage depth. These guys lose it the least of any I've heard, and the price is great because factory direct.

Truly, their bass is amazing. 3 dB down at 35 Hz. Chances are you won't need a sub.

A book shelf would give me more placement options and not violate the wife's insistence that I am not to cut any holes in the walls or cabinets.

Oh thank heavens! She didn't say you couldn't cut any holes in her... Then you could put whatever you want, wherever you want!

In any case, I would get the Dynaudio C1 or Revel Gem2, or Revel Voice2....

My favorite is the ProAc One SC. A fantastic stand mounted monitor. Dynamic, fast and disappear as good as the best will.

what are you driving the speakers with?