Thanks. Lemme try other config before giving up Atmos.
1. Put rear surround speakers at near-ear-level on the green cabinet (they will be slightly off-center and will be a bit far from usual seating position).
2. Run 3.0.2 Atmos, while Dolby recognized this configuration, I'm not sure if it's worth over typical 5.0 or not. However, I need different locations for ceiling speakers between those configs.
3. Run 2.0 and forget Atmos. Get better front and maybe new DAC.
What do you think?
If you are going to use this room for movies, then I strongly recommend front left right a center with at least one sub. The Low Frequency Effects, (LFE) really do need to got to a speaker designed to take that sort of punishment.
Unless your fronts are robust and quite costly, cinema duty may well destroy your speakers. So I think you need 2.1 at a minimum, and preferably 3.1.
I don't think you will get much benefit from surrounds in the ceiling. You can not do Atmos without properly placed surrounds. For Atmos correct speaker placement is crucial.
If I am correct, that room has windows. Using a projector and screen might not be optimal for you. You need a dark room, or at least one that will get very dark. If that is not possible, then a large TV screen will be far preferable. Cinema screens are not a good solution for multipurpose rooms like I think you will have.
Creating the full cinema experience, really does take a dedicated well planned room.
So what I think here most do, is if we have a dedicated room, then we put a simpler system in the great room. That is what I have done. So I have a 7.2.4 dedicated room, a 3.1 in wall in the great room, and a 2.1 in the family room.
I think you need to really discuss as a family, what your real needs, desires are, and what you can feasibly accomplish in the spaces involved in a sonic and practicable aesthetic design.
These projects are not easy, and require a lot of thought and design. Mistakes are common and costly, with results way less than expectations.