2 ft from the side walls sound correct. However, that measurement should be from the tweeter or center of the speaker...not taken from the outside edge of the speaker.
And yes, do add diffusion/absorption on the front wall and look at the ceiling as well. These will make the speakers 'see' your room as bigger.
Think of the front 1/3 of the space as the highest priority to 'soften' and diffuse.