Axiom M22Ti's and the VP150 from the Axiom Line-up; and the Studio 40's with the CC470 from Paradigm.
There's obviously a large price discrepancy, but does it fall within the path of diminishing returns? End QUOTE]
Wow you are really comparing apples to oranges, not even sure how you came to compare the two setups.
The Axioms are comparable to the Paradigm Monitor line (i.e. The Mini Monitors and the cc-270), not the Studio line.
The large price difference you spoke of is for a reason, the Paradigms Studios you mentioned are in a different class than the Axioms.
My advice to you is two fold:
1--Audition both setups side by side to understand why the Paradigms Studio’s are a more expensive speaker.
2--You get what you pay for.
I strongly suggest getting the best you can afford, it will likely be a long term purchase.