Is your brother's system in the same size room as yours? The room has a great influence on the sound, and a set of small speakers in a small room is better than the small speakers in a large room to an extent, too. Some don't particularly care for Klipsch speakers generally, too (I'm one altho some of their newer releases seems to have resolved some of the issues). He may not have integrated the setup as well as yours, too. Hard to know just by the brand of speakers involved in any case.
If you like your speakers that is great, so you don't need to go spending money on them. Likewise, your Yamaha 1060 is just fine, the newer avr may have some new audio features, but as far as general sound quality, nah. Save money there too if you don't need the feature set of a newer avr.
If you want to improve sound quality speakers/subs and paying attention to setup/room acoustics is the best use of your money (compared to electronics). I don't think I've ever seen a negative comment about the BMRs (or Dennis' work in general), can't say as much for KEF across the board.