What should be my next upgrade? Speakers?

Those that don't mention cables can usually use better ones.

Actually, they are listed in his system profile. I agree with Kal's comment, though, particularly in this price range.

Regards,
-- Al

If your budget can handle around $2200 for front main speakers, you might consider the Martin-Logan Source. They have been widely raved about for transparency and overall performance for the money, and I suspect would provide a huge difference relative to just about any dynamic speaker that costs significantly less. I should say, though, that I have not heard them myself, and that I have no feel for how well they might mesh with the other speakers of your multi-channel av system.

Regards,
-- Al

I should add to my previous comment that the Source's are 8db less sensitive than your Klipsch's, with similar power handling capability. So if you typically use most or all of the volume capability of the Klipsch's, the Source's would not be suitable. Essentially, I would expect the Source's to give you better transparency, accuracy, and detailing, while sacrificing peak volume. Their bandwidth specs are pretty similar.

Regards,
-- Al

Yes, many of the Martin-Logan's have been particularly noted for their good looks. And the Source's, in particular, have an unusually small footprint for an electrostatic (or in this case, an electrostatic/dynamic hybrid), which help make them a good match for your room in terms of physical size.

In a 19 x 12 room, I would guess that you would never come close to the sound pressure levels that your 98db speakers are capable of, at least at their rated 225 watts. Pictures on the wall would be falling off their hooks, and you would be running for either the volume control or the exits!

But on the other hand your 70W amplifier is only capable of driving them to around 5 db less than that full volume capacity -- not a huge difference, but noticeable. So as I said, my main concerns with the Martin-Logan's, aside from price, would be whether their 90db sensitivity is sufficient (my guess is yes, but that's just a guess, without being familiar with what you listen to and how loud you play it), and how well they would blend with the other speakers in the setup.

Best of luck!
-- Al

Re cables, for a good read that was written by a person who is both a noted authority and someone who sells (non-cable) product to both the audiophile and professional markets:

http://wiring.svconline.com/ar/avinstall_designer_cables_critical/index.htm

I think he does an excellent job of explaining why and how cables can and do sound different, while at the same time putting in proper perspective the nonsense and hype that tends to surround them.

Regards,
-- Al