Hi Riker,
I also have a tendency to evenly mix my HT and music listening and have been messing around with various configs. The other posters seem much more knowledgeable on 'fixing' things, so I'll try to address your first question - that of other options.
I have two HT/music systems:
-Sony AVDS500ES (5.1)
-Energy C-5s front
-NHT SA-2 sub-amp with NHT 10" sub in a custom downward-firing enclosure
-NHT SuperCenter
-NHT SuperOnes (rear)
My second outfit is:
-Denon 3805 7.1 AVR
-Denon 2810 DVD
-Cambridge DVD89
-NHT SB3s (front)
-Axiom EP-500 sub
-Energy LCR (center)
-Energy RC-10s (side)
-Energy C-R3s (rear, di-pole side-firing, but I'm thinking of replacing these with Axiom QS8s)
And I have a pair of Panny 50" plasmas (one for each).
So for smooth music? Contrary to what I would expect it's the bookshelf size NHT fronts with the EP-500 monster that really bring out the 2-channel stuff on my 400+ jazz cds (I digitized all my lps using a Mitsubushi LT10 tt) ... BUT... my local dealer gave me a chance to audition NHT ST4s (replaced now by "Classic Four"s) and these have side-firing 8" subs in the tower cabinet. Much smoother than the separate sub but not quite as much 'punch' during the HT. You may want to consider something like that if music is your primary concern and HT your secondary.
A pleasant surprise... in back-to-back tests with the C-5s and passive sub and the SB3s and active (EP-500) sub there isn't a lot of difference. The C-5 towers blend better with the passive sub but you can't hear the fingers over the frets as well as you can with the SB3s and EP-500.
But for HT the system with the EP-500 wins - not by what you might expect - but it does win.
Seriously - consider a tower design with side-firing subs. I haven't heard the Classic Fours (which have 10" side-firers as opposed to the ST4s 8" ones) but they are supposed to be very good.
Sigh. Too much information or yet another option to consider?
