When you say "didn't spring for the HDMI board"... do you have a commercial version of Pana display? If so, you can still get one, right? I guess you don't need one, nm.
What is your kid doing to your speakers? The worst things I've heard are either pushing in the tweeters, and putting toy cars in the ports.
Does your kid even know how to take off the grills?
All the buttons on the electronics is another story, however. So putting them in the closet seems like a good idea. I don't like the idea of a soundbar one bit.
Assuming you can figure a way to run wires, there are plenty of options for wall mounting. There are some GREAT deals on Ascend 170s here in the classifieds. The wall mounts are easy. OTOH, they aren't exactly sexy, somewhat boxy I would say. Then again, the value is excellent IMO.
I'd take a pair of those anyday of the week, and twice on Sundays, over a soundbar.