I've had a $99 Logitech UE smart radio for a year (similar to the Grace Mondo). Basically a wireless clock radio with 6 hour battery. Great for background listening, but not audiophile grade.
For more serious sound in a small space on a budget, I'd look at an iTouch ($199-299) that could hold 500 to 2,000 CD quality songs, Pure i20 docking station ($99, takes 30 pin digital iPod output and can output RCA jacks via it's own good quality DAC), and add active (better)/powered speakers such as:
Adam A3X ($650/pair, active, ribbon tweeter, small 2-way, single/front volume control, highly resolving/studio quality sound, tight bass/highs breathed, can fill a room)

Audioengine A2+ ($250/pair, powered, very small 2-way, single/rear volume control, has it's own DAC, subwoofer output)
Emotiva 4s ($300/pair - look for discounts, active, ribbon tweeter, small 2-way)
PSB Alpha PS1 ($300/pair, powered, very small 2-way, single/rear volume control, subwoofer output, reportedly used by Paul Barton himself)
Of course the really cheap/dirty route would be to just plug Audioengine A2+ speakers into the computer your typing on.

Note: Active speakers have one amplifier wired directly to each driver which allows the amp to "see" the driver load and react better. The low-voltage crossover feeds the amps and can be more sophisticated/higher quality (in traditional home hifi speakers the crossovers are fed by the amps). The result is incredible dynamics, ruler flat frequency response, and unbelievably deep/full bass. Powered speakers include single amplification channel per channel (sometimes both in one cabinet), so either way no worries about matching amp to speaker, filling up your desktop with components, or buying speaker cables, but the speakers do need to be plugged into a power source (shouldn't be a problem on a desktop).