Going in-wall over in-ceiling is the way to go.
Start off with this: If there are ANY rooms over the family room, then you can't use the ceiling speakers. Audio bleeds upwards straight into adjoining rooms. Any surround sound or other audio will go right into bedrooms above the family room.
Follow that up with the reality that audio from overhead can often sound very strange if not done properly with angled speakers designed to push the audio towards viewers.
If you can go in-wall instead of in-ceiling, that's a good starting point. If you can go to bookshelves instead of in-wall, that's even better.
I have used a fair number of in-wall/in-ceiling speakers over the years, and the best sound I've heard has come from the Sonance 3-way in-ceiling speakers when I've HAD to go in-ceiling.
http://www.sonance.com/in-wall-in-ceiling/visual-performance/large-round-square
Unlike the long list of models which are 2-way with pivoting tweeter, these are built for performance and quality from a company that lives almost entirely in the in-wall/in-ceiling world. They also have about 100 different options for completely stealth installations. Your budget will largely determine your results with them, but they don't operate in the same world that others do. They are a cut above.
That said, for sound quality that is on the cheaper side but works well, I like the angled Monoprice speakers:
https://www.monoprice.com/product?p_id=4929
The angled drivers help to direct audio towards listeners instead of straight down into the room. The 8" driver gives a fuller sound to the audio.
For in-wall, on the cheap side, I almost always stick with Monoprice:
https://www.monoprice.com/product?c_id=109&cp_id=10837&cs_id=1083702&p_id=6816&seq=1&format=2
Once again, a 3-way design with an 8-inch woofer.
These don't disappear, but they are family friendly, and you can put a plant in front of the wall if you have to deal more with WAF than you do with quality. The in-walls won't bleed audio into other rooms or cause issues with sound coming from the wrong location.
But, on-wall or bookshelf models are a better choice overall. I'm a big fan of the Definitive Technology Mythos line of speakers for on-wall. If you can get there, that's a different discussion.
I will say, that I've done a set of the Martin Logan Stealth Edge speakers behind a AT theater screen once in a decent room and they sounded fantastic.
https://www.martinlogan.com/architectural/stealth/index.php
Pricey, but really, REALLY good sound. Not sure they are ever worth it in a so-so room.