702 f/x vs. 265-LS in walls - thoughts, trade offs?

Hi all. I planned a 7.2.4 with 705 fronts, 706 center, 702 surround and 703 rears plus 4x 700-LS overheads and twin outlaw LFM-1 EX subs. Processor is Denon 4300h and amplifier is outlaw 770 (200w x7@ 8ohm and 300w @ 4 ohm).

Loving this setup but the surrounds and rear s were HUGE on the wall and didn’t pass the WAF test. Wife doesn’t mind the 702 surrounds high up on the wall but that poses a problem: you lose some differentiation between the rear Atmos heights because the 702 surrounds are similar angles from the listening position. I’d rather have my surrounds at ear level. My only option there is moving to an in wall speaker. Those options would be the 80 F/X but those being circular would look like a porthole. They are cheap though. The second option would be switching to the 265- LS in walls. If I sold the 702 pair I would still have to add in two or 300 bucks for this set up. I don’t know if anybody has compared the two but I’m curious how much sound quality I am going to lose with the in walls. I can add some two by fours to mimic having a box in the wall and all of these walls are insulated with roxul sound insulation.

Has anyone face the same problems?

I also switched from the 703 rears to the TL3 Blackstone series small speakers and those are actually surprisingly nice and about a 10th of the volume.
LSiM 703s in home office. Building a home theater and looking for LSiM 706, 703, 705 and 707s right now.

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