Damn Michael! That is a masterpiece of text char illustration!
The low ceiling causes reflections and resulting nodes that are reinforcing a frequency that needs bumping. 8 foot node is 70Hz. Use modecalc to take a look at what frequencies are dominating your room.
http://www.realtraps.com/modecalc.htmI can picture what you are proposing. If the short room is well padded with decorative absorbtion, it could work out pretty well. It gets the speakers as far from the vertical walls as possible, kinda... The only thing I am worried about is the 16 foot peak. It is shaped like a horn, aimed right at your head and will create a significant distortion of midrange frequencies and amplify that for you along the way toward your head. Getting the speakers' front baffles behind that drop wall (placed a little way into the short room) would be a big help by putting less sound up into that horn, but the hanging picture might be in the way?
I think that tall acute angle corner is the reason why you are dissatisfied with the acoustics. The more acute the corner, the worse the midrange phase distortion it creates and the louder it is amplified. If you have a tall ladder climb up there and sing in different voices, high and low. You will hear how it is messing with your hifi. Then send your wife up there to do the same thing, and listen to how loud it is down below. Ask her to sing something really corny, like "You light up my life" Tell her it is the perfect frequency intervals for acoustic analysis. haha
Can you hang a big tapestry up there? You could put 2" thick absorbtion behind it, and that would quiet down the mids pretty well. The bigger the better. simplytapestries.com has some big ones that look pretty cool. A big rug would work too, you get the idea. It should be an inch or more thick to really cut down the mids down low enough to noticably improve things. You could hang up a big comforter to test the theory before buying something.
To boost bass in the room where it sounds weak, you actually add bass absorption in the corners. It is counter intuitive, but it works. The bass trapping evens out the bass response of the room, boosting frequencies that are too low and lowering frequencies that are too high. You might need a lot of it to make a noticable dent. Putting it close to the speakers concentrates its effect by absorbing more sound before it has a chance to reflect, but the speakers must be placed next to the sidewall for that trick to work. Trapping works as a percentage of the reflective wall area, or as the precentage of corner length that is treated. Not just near the speakers, the whole inside of the enclosed space. In an open floorplan room like yours and mine, this amout of bass trapping can be difficult to achieve. Too much bass trapping behind the speakers (around the front wall) can also make the room sound dead in contrast to all the untreated sheetrock wall area which is still reflecting and maintaining a high room efficiency. Some speakers are more sensitive to this. It is a try it and see proposition, but some basic guidelines are helpful.
Since the speakers are single drivers, you can get a lot closer to them and reduce the apparent room affect. Have you tried a 8 foot triangle in the short room? With speakers at the hanging picture, pointed into the short room, with you sitting close to them. Bass would be better too. Good luck!
Rich