Of course the problem is physical dimensions. The amount of things you have listed originally do not fit in the physical dimensions you had planned for, therefore it's time to consider alternative options. Either increase the height to accomodate upper-mounted PSU's, cut back the amount of blades to 7 and shrink the heatsinks by a small amount, or have the option to run an external PSU. I'm a fan of individually sourcing external PSU's, as you can save a lot of money looking for used/refurb units as opposed to having to buy new over-priced PSU's from the manufacturer. Look how much of a premium you pay for PSU's when buying SP1/3x or S2/4's, that's because brand new server PSU's are expensive and it is not feasible/practical to source used/refurb units for production volume. When you shift that "problem" on to the customer, everyone wins IMO, and it's up to them to be as frugal/resourceful as they feel appropriate given their circumstances.
The PSU's should probably have their own partial enclosure, and I don't see having part of a 120mm fan blowing on part of that enclosure as much of a problem for airflow, especially given the potential distance between the fans and the enclosure (the DPS-1200 are only ~8" long + backplanes/cables, and there is 15" between the inside of the front and rear fans). My render had allotted ~3.5" for two vertically oriented, side-by-side DPS1200's with clearance to mount them into a breakout board/backplane.
I think you can safely assume that 110V is on the way out even for any "home" miners, not just by your own standards. It will be interesting to see how the S7 turns out, to see if it's still marketable to "home" miners, or if they start going larger form factors similar to S5+ for all their new models.
Edit: How many people really have spare 25A 110/120V circuits in their home anyways?