While I haven't listened to the 340m or 340c, I'm sure they sound excellent given the performance of the 170, and the fact that they share the same drivers.
I personally notice the difference when placing a speaker down below or up above a TV. I gave this issue a higher level of importance over other Home Theater factors (display options, room decor). While I haven't tested the 340c with 170s, I did notice a difference when I auditioned similar setups from Paradigm, B&W, and Thiel (4 Bookshelves w/an M-T-M or horizontally styled center). My personal preference was 5 identical monitors at equal height, and as Ben mentioned, is recommended for many sound formats such as DD, 5.1 DVD-A, and 5.1 SACD. I believe DTS and THX also recommend this speaker arrangement with the exception of the surrounds.
The best thing to do if you're interested is to try it out at a local hifi store, or order both a 170 and a 340 for the center, and choose which one you like best. Then you can either ship one back, or save it if you ever want to upgrade to 6.1 audio such as DTS-ES discreet.
One thing I didn't mention above is that when first getting into this I was nervous that 120W wouldn't be enough power for drawn-out action sequences. After auditioning other speakers with similar sensitivity ratings to the 170, I found that 100W was plenty. My 120W amplifier powers them with spades. In my room (18' x 10' once again) 85dB reference levels are acheived easily with 120W and no audible distortion, maybe some slight congestion in the upper range during complex action scenes compared with speakers at 10x the price (like the Thiels I love). This is when effects are peaking at SPLs that make my ears ring. At normal volumes they sound near-perfect.
Anyways, I don't think you can go wrong with the 170s, and I'm sure the 340s are also impressive.