In Walls

I don't claim to be an expert on in wall speakers but since you don't have any luck getting responses, this is how I would do it. Plenty of well respected speaker manufacturers offer in wall speakers. If you are a fan of B&w, for example, why not look at what they have to offer. At least its a starting point.

I know you don't want on wall speakers, but have you considered the cost of installation? Unless you cut into the walls and run the cables yourself, that could be a very big portion of your budget. Possibly a compromise? Maybe just a small pair of speakers for your main L & R channels and do the centre and surrounds in wall. Its just an idea. You would save money and get better sound where its most important.

IMO the only in wall speakers that remotely keep up with freestanding are of the variety that have there own enclosure that has to be sunk in the wall. If you can accommodate that than have a look at Triads.

I recently installed an in-wall system with Joseph Audio Insiders. I posted my system and pics on the virtual systems section. The system will be awesome if you pay attention to every detail, just as we do with our main systems. Speakers that should be on the short list are Joseph, Totem and Triad. Good luck.