Hi hemchandran,
whatever speaker system, whether a surround 5.1 (or greater) or a simple stereo set-up (2.0), all needs to be placed properly and with care getting utmost out of them -> precise reproduction of the source (ie CD, DVD).
What you've seen/described in common is imho rather a compromise in the favour of WAF and far away of a precise reproduction.
The room you place speakers is dominating and accordingly speakers claiming their positions, there is no "give-and-take".
You can calculate optimum distances between listerns position and speakers, general guidance is surely available here in this forum, however, clarify for your self what has priority. However, provide some more details and we can bring ya closer to the optimum...