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PAC is the way to go or add a multichannel amp/dsp combo with summable inputs. The latter requires a lot more work and knowledge, plus you lose some convenience features. PAC Amp pro units are worth every penny IMHO.
Something to keep in mind if you start swapping out speakers with aftermarket ones. The HK system uses passive crossovers built in to the factory speakers. If you replace them, you need to add the ability to tune them, so you'll have to add your own crossovers.
The difference from my phone to XM is crazy. I think the alpine is getting better as the speakers break in. I have treble set between -5 & -7. The factory EQ almost seems like a complete opposite of what it should be IMO