I will say that good room acoustics can make a speaker sound bigger, deeper, and tighter. A good 2-way speaker in such a room can be very satisfying.
I own 2-ways with 6.5" speakers. They sound great, but they'll never have the deepest bass, and dynamic range of 15" woofers. for my apartment lifestyle, that's kind of irrelevant though.
Line arrays may make up for the displacement, but their real benefits come from imaging, wide sweet spots, and reduced room interactions which yield better clarity and imaging.