@2channel lover - I assume you mean room between the couch and that half wall/bar seating area? In that case the pic is about right, the couch is right up against that wall. If you mean total space, including the area behind that bar area, then there is a lot of space - there's another room with a pool table and the back wall is ~17' from the back of the couch. When you say ceiling mounted speaker, you mean not in-ceiling, but mount something on the ceiling or have it drop down with a hanger? Sorry if these are dumb questions. Regarding in-ceiling and atmos - what are thoughts on putting the height speakers towards the front of the room? Only asking at this point because I have things opened up and ladders/fish tape out so was debating running the speaker cables now and perhaps leave them in the ceiling for the future?
I saw the room on the other side of the bar...obviously that gives you plenty of room for rear surrounds...it looks as if the column and bar might be a factor there so I wasn't too keen rears back there.
The additional pics help...but they mostly reinforced my initial thoughts...5.1, maybe on atmos.
Ceiling mounted...yes, exactly, not in ceiling.
I get the WAF...my cousin built a new home and his builder/low voltage contractor installed a complete inceiling 7.1...he was so excited...until I told him it was a big mistake, it's going to sound like crap...it sounds like crap with TV dialog coming from overhead...but if it's just surrounds...it's not ideal for the best surround sound, but it's not a huge big mistake imo.
Looking at the room again...I think I would leave Atmos alone...you're going to have to use the ceiling pre-wire spots for surrounds...atmos in ceiling closer to the TV wall...I don't see that working.