I'm a fan of sub/sat combinations and I think Seth is offering sound advice (no pun intended). One alternative suggestion is to pick up a
Hsu VTF2-MK3 for $499 and dedicate $1,500 to the speakers. That extra bit could open up some serious speaker options and move you up a class. You could later add another VTF-2 (which would be awesome) and pick up some towers to replace the bookshelves as mains.
Brands I prefer over Paradigm = B&W, Focal.JMLabs, Dynaudio, Era.