In-wall speakers vs. bookshelves plus subwoofer for Stereo/HT setup

I live in a condo, and have no dedicated listening room. I have a TV/HT setup, plus a separate Amp for my front speakers (B&W 805s).  Now we are now remodeling, which essentially makes it hard to have a floor standing speakers, and/or bookshelf on stands.  Hence, my only option would be to put bookshelves, ON A SHELF (god forbid), or use some in-walls, plus an added subwoofer for the bass which can be placed beside the new cabinets being made.

What would be a better option? I like to get some nice bookshelves if possible, BUT they'd be up against the wall, and probably boxed in within some shelves... so would a higher end in-wall do better in this case? Like either Focal or B&W top of the line in-walls?
It does not have to be in-walls.....

Option 1 - On walls



Option 2 - bookshelves that are designed and made to placed on a shelf or wallmounted

REGA R1 / RS1 /RX1 ( model in succession)

”....Immediate impressions are a clear and transparent portrayal with very high detail retrieval, fast and controlled transient response, and superb musical timing, both in articulating rhythms and tempi, and in placing instruments within the temporal flow and context of the performance. The RR125 is an outstanding mid/bass driver, sonically and musically right in line with the midrange performance of Rega’s amplifiers and phono cartridges. Get the midrange right and everything else will fall into place. Get it wrong, and all the king’s horses…

The Rega R1 becomes my new budget reference speaker. In addition of its ability to get the fundamentals of music right, it adds clarity and resolution, and an ability to lay out a vivid and coherent 3-dimensional stereo image. In small room applications, what more could you want?...”

Hi Alex. No, you are better off with Bookshelf speakers like Harbeth Monitors. It is difficult to control resonances in walls and it might even
increase transmission to the neighbors assuming it is an attached condo. The shelves have to be weighted down nicely. Put granite under the speakers and bang on the shelves to make sure nothing rattles any rattle has to be fixed or it will drive you crazy. It helps if all the shelves are full of books and records. Hollow spaces resonate. If there are doors make sure they have strong magnetic catches. I have heard reasonable decent book shelf systems. 
Bookshelves, for sure. Everything mijostyn says plus bookshelves you can experiment with placement. Something changes they easily move onto a stand. Or whatever. Point is, options. Not to mention they just always look a whole lot better.

For bass the answer is always four small ones. The smaller the space and the fewer the placement options the more important the inherent advantages of four becomes.
Thanks, so bookshelves, ensuring the shelf they are placed on, is solid (could make it stone if needed), and maybe even add some isolation stands?  My biggest issue would be reflection of sound from the BACK of the speakers, and also sides, as it WILL have to be close to front wall, and may have shelves on the sides.

Which leads to WHICH bookshelves work best in this kind of setup? I find typical bookshelf speaker designs are ridiculous when advised AGAINST placing it on a bookshelf! I assume a front port would be better, or bottom port than rear port, right? What about acoustic treatments? I could possibly add some diffusers or absorbent (if small enough to fit) on the wall behind TV and the speakers.
don't do inwalls. get the regas, or if you can afford 'em paradigm signature.
If you go inwalls, and budget permits, look towards James Loudspeakers.  They're about as high quality as can be. They are built with aluminum enclosures and top-notch components through out. 
I agree with the preceding responses but would ask the following questions:
1) what are you looking for from the system - i.e. how do you listen - casually doing other things, or in a dedicated spot?
2) how loudly do you tend to play the music?

The reason I ask these questions is that I faced a similar choice with a remodel a few years ago and ended up installing some higher end Sonance in walls (not in ceilings - those appeared too compromised to me) in a vaulted ceiling (I replicated an infinite baffle in the cavity and was careful with how I did it), coupled with a REL S/3 sub. The sound is remarkably satisfying for casual listening. If I play it too loudly, of course, it excites the rest of the ceiling which is noticeable as distortion.  But, we don’t really ever listen to music loudly on any of my three systems.  This system is in a common space (dining/kitchen area) and is the one we listen too more often while cooking, putzing, etc.  

If it were a dedicated listening spot and you had any notion of wanting imaging - go the bookshelf speakers.  If you want higher volume. Same.  But bookshelf speakers on a bookshelf, as previously noted, present their own challenges and compromises which I don’t think are that easily solved.  On wall speakers wouldn’t have worked for me, but might be the way to go for you.  That said, I am very satisfied with what I did in this situation and particularly enjoy that they’re nearly invisible in this space and the music is easy to listen to, smooth and full range.

As always shop carefully for on-walls or in-walls.  I found a huge difference in tonal quality - more than I expected.  Some name brands that should have been good - weren’t. 

Thanks... I do listen to music both as background, as well as dedicated listening from one chair. Plus, the front speakers act as my HT front speakers in 5.1 channel when watching movies, TV, etc...