Hey John,
I prefer not to post on threads like this in this manner but in this case, I think I have several good options that could get you where you want to be and the comparisons could be beneficial for some.
1. Rosso Fiorentino Pienza. It is tiny - similar to the P3ESR - but full bodied. I am about to receive my first shipment of the series 2 but the first gen always put on a good show and left jaws hanging. This will be darker than the C7ES3 but I've never had anyone prefer the C7 over the Pienza.
2. Harbeth P3ESR. I don't like selling these in most cases because they need a unique situation to shine but yours might fit. They do have a similar sound to the C7 but they sound their size in terms of frequency response.
3. Dynaudio Special 40. I got these in on trade about a month ago and they're pretty darn good little speakers. They lack *something* the Pienza have in the midrange, but they do a lot right and will offer a smaller package similar to C7, better in some respects, but not as thick in the midbass either. They do have bass but the bridge to the midrange seems to be missing a little. Still a VERY impressive speaker.
4. Sonner Legato Unum. I used to be a dealer for them but allowed another local dealer pick them up. The Unum is attractive and small with an open and airy soundstage. You'll give up some bass impact but there is a cohesiveness in the frequencies it does cover. These are demos and I can make a hell of a deal on them.
I have other things but I think these are some of your best contenders if you want to keep that Harbeth type of tone but downsize the cabinet.
I am assuming a price around $2,500 or less and if that's the case, I'd say options 3 or 4 are best. The Pienza are the best of the bunch but retail at $4,000. The Dynaudio are pristine and well under retail and I think would be a perfect fit for you.