Hi James, Welcome.
There's just no way to know a couple of key things here:
1. How any of this stuff will sound to you in your room; and
2. How you're going to manage to wipe that silly grin off your face when you replace those small speakers with your Axioms.
How big is the room? I see the front is not very wide (12-13'?) - how deep is it? I love my M60's and shamelessly recommend them to everyone, but if you don't have a very large room or prospects to move into one, you might be better off getting M2's or M22's plus either a sub or a new receiver. Either scenario will likely sound much improved to you.
I don't know enough about the receiver to really comment, but as long as you don't play it so loudly that it sounds bad, you'll be fine for a while. The rating is probably very optimistic.
You can try the new setup with or without the sub and decide for yourself. Especially if you get the M60's, I'd be surprised if that sub made anything sound "better".
Don't sweat the placement - just move stuff around until you find the magic balance between sonic bliss and acceptable aesthetics. But be aware that the M60's are surprisingly deep speakers, and do require a bit of room behind them as well. They WILL stick out a bit from that right corner.
Love the domain name where you have your pics.
Enjoy the journey
