My apologies if I seemed like I was taking your suggestions the wrong way- it was just early in the morning and I was trying to jot the reply down before I ran to get my daughter and get her some breakfast and then bring her downstairs with me so I could hit the gym and she could play with her toys.

Its hard to get a good work out in when you have to split your focus but its better than nothing. Got a few minutes now to check in here.
I think its good to challenge your assumptions. Like I said I learned much from my fellow Hitchhikers. These are good suggestions. In terms of the distance from the walls- I just checked and due to the toe in- part of the speaker is closer and the front is further away. The tweeter is about 34" away and the woofers are closer to 30" away. I really can't move the speakers much closer in because they will get too close to the screen and I worry about reflections off the pretty, but shiny Meridian speaker enclosures. I might be able to get a few inches but thats it- probably not worth it. Whats interesting to me is the people from Meridian felt that its best to use the location modes. Btw- I don't have "wall" but boundary/free/sub/center boundary. Is wall a new mode?
On the rears, I think there is merit to the toe in. I was concerned about the rear seats but I think it will not matter and I agree that diffuse was really from the days of DPL. Given that our hearing is not nearly as accurate in terms of locating sounds when discerning sounds coming from behind one's head, it makes sense to get some extra directional help. When I have some more time I'll be sure to give that a try and report back.
Ronnie, I can't wait to see your pictures!!!
gotta run
best regards,
Jerry