I’d have no problem implementing a 7.1 setup of one form or another in a room that size. Whether you go heights or rears is up to you, but the surrounds, being dipoles, should be placed directly to the sides of your listening position.
It’s a tough call of which way to go. With your small sats, it may be beneficial to go with the heights as opposed to the rears. Assuming you’re looking at the 12’ wall, if you go with rears I’d place them about 6’ apart.