Another lost post....
Someone suggested room treatment, I agreed.
The physical speaker size isn't an issue; frequency response is. The room size and shape will limit performance;
Square room = peaking response in the lower frequencies due to two dimensions being the same (room nodes).
Small room = changes the frequency of the peaks above; smaller the room the higher the frequency, in a very large room the node frequencies are so low as to not be a problem.
Small room = first reflection points are closer and therefore reflected sound will be closer (in time) to the original, this will lead to a blurred image (soundstage).
DSP room correction can help with the frequency response due to room nodes but cannot change the acoustical reflective properties of the room.
All the best,
Steve.