It's a huge myth that home theater has to cost a fortune. Let me be clear, in my world, anything short of a front projector isn't home theater. It's just TV with surround sound. But, I respect that some (clueless individuals) may disagree.
With entry level 1080p of good quality starting under $800 and some 4K pixel shifters at $1,000, you can get a complete setup from $1,500 to $2,000 which will be comparable to many local movie theaters. Yes, the 'home theater in a box' kit, won't be super great, but using a respected manufacturer and hitting up Accessories 4 Less online can get very entry level surround. Add in a fixed frame screen (when possible) or a roll up electric screen for a few hundred bucks, and you are good to go.
I like your setup, and the attention to detail by adding a valance to cover your screen is a big plus.
I had a client do a 106" tab-tensioned screen put into a built-in setup of bookshelves once. When the screen was up, you had no idea that there was even a projector in the room. The projector itself was built into the soffit. Super clean and the image was great.