Folded tweeters vs. dome?

Thanks again Eric.  My living room is about 25x16, with the speakers about 8-9' apart and 12-13' from my ear on the shorter axis.  Three solid walls, with tapestries hung front and rear on the cathedral walls and I have some foam in the corners, The fourth wall opens into the breakfast area.  I have played with speaker placement until I feel I have accomplished the best imaging and sound stage I can, but it still lacks a little presence and realism.  I understand I am at the 'entry' level with the separates, but I feel there is something to gain with the speaker upgrade.  I would move the Kef's to the surround position for the theater processing, but I prefer to listen in stereo mode much, if not most of the time.  What I would really love is for the mains to 'disappear' and the sound to originate behind the speaker plane with a much larger sound stage.  I would say I tend to lean more toward the realism than the musicality.  I know it's a pretty tall order for a $5k system.

If you like the KEF sound and you have $1200 to spend, consider the LS-50's. (Standmount monitors) They are available new for $1200 now (used to be $1500), and you could probably find a used pair for under $1000.  They image like crazy, still rated class A by Stereophile, and you've got a sub to supplement the somewhat-lacking low bass.  They are fairly low sensitivity (85-ish) so you do need serious amplifier power.  You could order a new pair and try them out for a few weeks and send them back if you find them too small for your room.

what do you have on the floor, between behind and in front of the speakers?? 

+1 @to catch

If you don’t need "you are there" sound pressure levels in that size room you will not find a better speaker in terms of balanced off axis response and stable imaging at the $1200 level than KEF L50s. The sub will free them up to do what they do best and you’ll be hard pressed to improve the outcome in terms of increased output for anything near the price.

I do like the Kef sound, and as the new Rotel burns in the IQ5's are sounding better and better.  I enjoy it loud now and then, but usually at a moderate volume, IMO.
Eric, the living room has the usual accouterments, the speakers sit about 2' off the back wall and in front of the entertainment center by about 4". There is a blanket chest in front of the sofa between me and the speakers, but low enough that I don't feel it's messing up any imaging. (I can see the bottom of the speakers and 8' of carpeted floor in front of them.)  The speakers are a good 9 or 10' from the sidewalls.