Hi MCL,
I'm delighted to hear that you turned off the Audyssey EQ. I'd suggest that you leave it permanently turned off. As you've discovered, Audyssey EQ--marketed as some kind of sonic panacea--has the ability to make really neutral, transparent-sounding speakers like the Axiom M60s sound bad. Audyssey is a flawed EQ system that often results in calls or emails to Axiom like yours from new speaker buyers who are disappointed in the sound they're getting.
As everyone has noted, a really good subwoofer and QS8 surrounds will greatly improve things. How large is your room--length, width, height--and how far back are you from the M60s? If you like really loud, clean levels of the sort that some of my Axiom colleagues prefer, you may want to consider an outboard power amplifier of, say, 200 watts per channel for the M60s (you'd use the Onkyo's left and right pre-outs to the power amp).
However, you're ahead of the game already by turning off the Audyssey EQ.
Regards,
