Hi Semi,
One thing that seems to accentuate the perception of being "too bright" is if you actually have some "hot-spotting", meaning that your picture is brighter in some areas than others. This occurs with higher-gain screens with short projector throw-distances, because the relationship between projection and viewing angles varies more across different points on the screen as the distances get shorter. 1.8 gain is 'high-ish' for a home theater with a DLP/LCD projector, and your throw distance (less than 2x the screen width) is somewhat on the short side. If you can get the projector further away, or even try it temporarily, you might see if this makes an improvement. I'm assuming of course, that you've set up your black and white levels correctly.
One thing that seems to accentuate the perception of being "too bright" is if you actually have some "hot-spotting", meaning that your picture is brighter in some areas than others. This occurs with higher-gain screens with short projector throw-distances, because the relationship between projection and viewing angles varies more across different points on the screen as the distances get shorter. 1.8 gain is 'high-ish' for a home theater with a DLP/LCD projector, and your throw distance (less than 2x the screen width) is somewhat on the short side. If you can get the projector further away, or even try it temporarily, you might see if this makes an improvement. I'm assuming of course, that you've set up your black and white levels correctly.