"Playing with speaker placement in hopes of improving focus and image placement etc etc along the width of the soundstage. Voices and instruments seem to be all bunched up in the middle of the soundstage. At wits end...can't seem to get an improvement. Too close to side walls? Too much or too little toe in? Speakers too near or far apart?"
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I think problems arise mostly from what there are on your front wall..
-Drapes create strong pull of images (absorptive), whilst window's (behind it) reflection likely causing the poor focus.. iow. Images all mostly pulled to centre but lack the precision. I suggest possibly place diffraction panels in front of windows, behind drapes--to tame the wild reflections.
-Racks in middle (depending on height) affect image specificity too. However a two tier still sounds acceptable.
-Re width of soundstage--Take out those 2"foam (it totally kill first reflection) hence expansiveness of soundstage width is severely restricted--replace them with diffusive panels instead. These will take care of first reflection problems whilst enhancing stage width, ambience, and instruments specificity at sides.
IMO, start with the above, then play with toe-in/out to dial in further.
As seems like not much else positioning you can play with speakers, if these don't help, probably as some has suggested, get smaller speakers (2-way on stand perhaps) where you can play around more with placements. My 2c
Goodluck.
