What's wrong with the current system?
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I think the speakers are the weakest link. Don't know if I'm a fan of the horns either, not that they came with decent horns or anything. Placement is finicky as far as imaging goes. They're in a small bedroom, too small for horns I think, can be harsh, fatiguing. They were GREAT in a big living room w/ the huge center and surrounds w/ some DTS, but they're not working here. I'd like better midrange (a midrange driver might be nice) and cleaner detailed highs. Some type of studio monitors, some JBLs maybe.
In a small room monitors and a sub or two would be ideal. Go out and audition as many monitors as you can in your price range. Don't worry about the lower bass to much because the sub will handle that. If the bass is your number 1 priority I would spend as much as you can on subwoofers. Another thing to consider is that your horns are very efficient. If you change to a design that is less efficient then you will need more amplifier power also.