Everyone has to decide what works best for them.
But based on my experience with overhead surround sound, I think even 2 ceiling speakers would be more effective than ONE overhead speaker and 4 height speakers. So I would think 4 in-ceiling speakers are better than one overhead speaker and 4 height speakers.
To me, the only reason to have height speakers is if you can't install in-ceiling speakers. But you gotta do what you feel is best.