While a shelf system can be nice, if the motorized transport breaks, then the entire system becomes worthless. A small BD player and a small A/V receiver/speakers combo is a far better way to go.
But, if you are set on something smaller, then there are more than a few home theater in a box kits with integrated BD players...
home theater in a box blu-ray - Google Search
From Bose (AVOID!) to GPX ($149!) you can get almost anything in between and the systems can be setup with 5.1 or just a couple of the speakers from the package. These systems truly are designed around surround sound setups, so a stereo setup is kind of against the concept of Blu-ray.
All that said - a 32" TV in a room that is 12' x 20'? That's larger than a lot of people's family room! How far do you intend to sit from this TV? Is it to be used as a secondary room or a primary listening/viewing area?
I've got a nice PC monitor in my study with an integrated BD player, I wouldn't think of putting a BD player into any room in my home which wasn't a somewhat serious viewing environment. The kid's playroom is for games, and they are young (and destructive) so a cheap 32" TV. But the bedroom gets a 52", the family room a 64". Front projection in the basement theater, etc. If you are sitting about 5-7 feet from this TV, then 32" won't do you justice in that space. And, it is a rather large space.
