In wall surrounds.

I don't think that in ceiling speakers work all that well. Otherwise it is nice and clean looking. Paradigm make some very good inwalls - I teeny B&W's inwalls around the house - they are pretty good and convenient - good for the kitchen and house parties but not really big enough to be serious contenders.

I wouldn't have thought of doing it myself, but a friend of mine had rear speakers built into the ceiling and it worked really well. The speakers were behind the listening area and the surround effects were very apparent yet diffuse and non-localized, which is what I prefer. I don't think it would have worked as well if the speakers were directly overhead, but I really liked the way it worked in this situation.

My two cents.

I have rear in-ceiling speakers that work great for home theater. Sometimes I don't think they are on but it really depends on the sound and how the movie or concert was recorded. And they are wider in placement so the sound is not on top of you. Are they the best? No. But it's more for sound effects so IMO you don't need the best for that solution.

My Kitchen has expensive Monitor Audio in-wall speakers. I like to cook with music. The problem is once your in the Kitchen your making all kinds of noises (fans blowing, blenders turned on) once you start cooking your making all this noise and you cannot hear the music. Would I make that purchase again? Nope. I would go with a box speaker in the ceiling if I really wanted to hear the music.