I guess I'm lucky. My GF cares much less about how my stereo looks than I do. Yeah, sound quality (within my modest budget) is No. 1 priority, but I also consider my stereos part of the room decor. In many case they are a primary visual focus.
I don't do the HT thing. I just don't watch that much TV, and even if I did, I just absolutely abhor the HT visual aesthetic. Large black screens (when powered off), black components, black speakers and black cabinets to put it all in just isn't my cup of tea. I get that true movie mavens that have dedicated media rooms want the equipment to disappear when they dim the lights to enjoy a literal home theater experience.
I don't have such a dedicated room. My stereos are in my living room, my dining room, my bedroom, my loft. The areas where I actually live. So, I don't want my decor to resemble early Death Star. I want my speakers to look like fine furniture. I love natural wood. It has a natural warmth. Big black objects dominate the eye and just suck the light out of a room.
The very first stereo I gave my girlfriend was the ugliest one I think I've owned. It was an NAD 7125 receiver and a pair of Polk RTi28 speakers. Ironically, the Polks have real oak veneer, but it's stained black (why???). It met her needs at the time, but I have since upgraded her to a Pioneer SX-525 receiver and a pair of Dynaco A25s. When I got the Dynacos, the the cabinets were a bit beat up and my plan was to restore them. She's into the Restoration Hardware "deconstructed" look and loves the distressed look of the Dynacos exactly as I found them.
In any case, back to the OP's predicament. Yes, I know this thread started nearly 3 years ago, and yes, I also know his wife helped pick out the Expedit. That said, I agree with all the other posters that suggested he move the Expedit to another room. It just visually dominates the room, and not in a good way. I'd also lose the black tower speakers. None of that matches the rest of the room. It's visually jarring. His wife has a point.
I LOVE the suggestion of the KEF 104/2 Reference Series speakers. I have a pair in my bedroom system (replaced the donuts and ferrofluid) in walnut and they sound AND look great. They are not small speakers, nor do they sound small, but the footprint is similar to the OP's current speakers. To me, they would be a HUGE win all around. Better sound and better looks. That's a total win:win in my book. I suggest the OP do a google image search on KEF 104/2 and show some photos to his wife and see what she thinks. She mentioned she was concerned he'd want bigger speakers. This should help alleviate those concerns. The KEF 104/2 Reference Series are keepers. Once you get a pair the urge to upgrade largely subsides.
Judging from the photo in the original post, the house appears to be of mid-century construction, but the OP's wife seems to prefer a softer, more contemporary style. That can still work. If she doesn't like the look of the KEF 104/2 speakers, he can always divorce her (I keed, I keed). Seriously there are other classic speakers that would look great, AND sound great in that room. I think something age appropriate to the architecture, but with a softer look (something with off white or beige grill cloth would look nice) to match the wife's aesthetic would be great. Something like the aforementioned Dynaco A 25, or maybe a pair of Wharefedale W60D Again google image search is your friend. Show her some photos like these and see what she thinks:
I personally think an early pair of Magnepan MG1s or Dahlquist DQ10s with the oatmeal grill cloth and oak trim would LOOK great in that space, but placement would be a huge issue, especially for the Maggies.
To replace the Expedit, I'd recommend something smaller with a softer look and natural wood finish. I'm kind of partial to teak Danish modern credenzas, like this little guy I have in my dining room:
Perhaps, without the Ted Nugent album. It's big enough to place a turntable and receiver/integrated amp on top, and has a shelf for two more components inside and room for a couple hundred albums, but not so big it visually dominates a room.
That may be a bit too hard/masculine for the OP's wife and the room. So, how about something like the the
Blake Grey Wash 42" Media Console from Crate and Barrel?
It's only slightly bigger than my teak Danish modern mini-credenza. It's what my GF is using with those Dynaco A25s I gave her and they look great together.
As far as keeping things out of reach of the kiddies. They are three years older now and can reach things they couldn't when this thread started. They have also grown mentally in those three years, and should hopefully understand that some things fall under the hands off heading. Better to teach them what they can and can't play with than just try to put it up where they can't reach, because trust me, with kids, where there's a will, there's a way definitely applies. If they WANT to get at it, they will, even if it means climbing (do you really want that?).
Anyway, just looking at the OP's original photo, I see lots of possibilities for a stereo in that space that meets the need of both quality sound that enhances the look of the room, rather than detracts from it. So yeah keep the wife and work her into the equipment selection process so you can come up with something you both like. Once she realizes your "hobby" isn't a threat, that it can actually enhance your shared living space, she'll be more inclined to approve future upgrades. Who knows, maybe she'll even start buying you stereo equipment for your birthday and Christmas (like my GF does). The first Christmas present my GF ever bought me was a 300 pound 1965 Zenith mid-century stereo console, like this one:
Love that woman!