Welcome Scott,
I think you've picked out a good system, just get the right finish to satisfy your wife.
Could you go smaller, sure, m22's with a good sub are a great combination. A lot depends on how you intend to use the speakers. If you like to crank it up from time to time, you may want to go with the larger full range speakers.
You would hate to get a case of "upgradeitis" as most of us have.
I just upgraded from m60's to m80's and a ep500 to ep600 recently. Keep in mind my room is 900 Sq Ft or 8100 Cu Ft. Your room is actually 180 Sq Ft and 1440 Cu Ft. The 60's are one killer speaker, I just have a lot more space to fill.
Randy
