Yes, 100%. I would never deter anyone from the inwalls. They have the same character, just cant play as low or loud. The OWM3s definitely have more grunt, but I wouldnt say the IWM3s are a compromise. With a sub its pretty much a dead heat I would say. No sub? OW gets the nod for sure. Over an ATMOS system you are really going to notice increased dynamics with OWs. Dont listen loud? Wont matter as much.

Just a different tool for different goals. Smaller rooms kind of demand in wall speakers. Way prefer the onwalls in terms of install ease/time -especially in retrofits.

I havent compared IWM3s with OWM5s in the same room. But, Ive done IW-M3s/M5s and OW-M3s/M5s in same systems and they integrate very well.