Sorry, it's been a while. Life keeps getting in the way when I am planning other things. . .
I can now declare a happy ending to this story. Here is the final look:

And I am happy to say the sound as good as they look.
Here is how I got to this endpoint:
Ordered walnut veneer from Amazon. Sticky-back already applied. I had to order three rolls at 2 feet by 8 feet to cover all the surfaces. And sadly 8 feet is not enough material to properly do a "waterfall" edge with the same grain wrapping all the way around the speaker sides/top/other side. Aww.
First step is to layout the veneer so it gets flat.

It took about a week before the curl came out enough to work with it. And one recommendation: DON'T GET THE STICKYBACK if you can avoid it. If you follow the instructions on the interweb, you still have to use contact cement on "raw" surfaces. And the worst thing is this sticky-back smells like Love Canal and Chernobyl had a baby. It's incredible. I had to put a fan blowing to the outside because it was intolerable. Even after 2 weeks. And more issues with the stickback later. . .Just get the raw wood veneer and use your own contact cement. But before the veneer goes on I have to do some surgery:

I cut into each speaker in 3 places so I could put the thicker felt at each of the bends in the audio path. I wish I had smaller hands to do this but I managed to spray glue on the thicker felt and stick it in without need any 911 calls. At this point I put some temporary tape over the plugs and brought them to the basement to plug them in. The problem with the high frequencies cancelling out when I raised the bass EQ was gone. Or at least I could not notice it anymore. That is very very good news. I guess the padding is doing its job. Lesson learned. But the plugs were not air tight yet so more to do. . .
Satisfied that the audio problem was solved I globbed a pile of liquid nails on the plug and pressed it in place.

I drove some screws in the cracks to hold the plugs in place while everything set up. That is a super easy way to adjust the exact height/depth of things like this. In case you ever find yourself in such a situation.

While that glue was setting up I worked on putting magnets into the grills and speaker face. I wanted the magnets behind the veneer so now is the time. Because I am stupid, I bought these:

Don't be stupid. While the holding force of these magnets was theoretically adequate, in reality you need much much more holding force because the grill is trying to slide down the face and sliding magnets do not hold very well at all. And they are also separated by the veneer and the speaker grill cloth. So go WAY STRONG on the magnets. I recommend at least 1/2" diameter 1/8th thick rare earth magnets. Seriously I ended up putting in 10 of the ceramic magnets and the grills still slipped off. I added 2 pairs of rare earth magnets and the grills stuck like a dream (along with the 10 other magnet pairs). And I also have some of the smaller 3/8" by 1/16" magnets and they do not have the power needed. I think 8 pound force is what I ended up with for each pair. Also, I used 3/4" plywood for my grills because that is what I had and I also wanted that thickness for visual appeal. Using thinner wood will make for less weight but might lead to warping and or fragile grills. Everything is a compromise.
So here are the steps I used:
Put the grills on the speakers exactly where you want them to align.
Tape them in place.
Drills tiny holes through the grill and just into the speaker face. These holes will let you align the magnet positions without a tape measure.
Drill holes in the speaker face and grills to the appropriate depth. A brad point bit with a depth stop is the best thing. I have one somewhere but could not find it for this effort. Story of my life lately. So I went with a spade bit:
imagine these pictures with rare earth magnets instead of these ceramic ones.

Now, remember back to grade school where you learned that magnets attract when the poles are opposite and repel when they are in the other direction. I managed to get a couple of my magnets aligned correctly but several of them were repelling instead of attracting. Brain fart. Face palm. Do over. But I managed to push them out before the epoxy set up fully. I was then very meticulous about getting the poles to line up correctly.

And do you 2 part epoxy to glue these in. I thought about using hot glue but it seriously does not have the holding force if you the correct magnets. And do your best to get the magnets to the correct depth. They will show through the veneer if they are not the correct height. The veneer is very very thin. Like maybe 20 sheets of paper thin.
Eventually the glue on the plugs setup and I sanded it very very smooth. I brought them to the theater room again and WOWAZA the extra padding did its job. I can now raise the low end in the EQ and get the bass sounding like I need it to sound. Actually they sound pretty good even with out any EQ at this point.
Continued. . .