Got an update for anyone that cares. Cut out the bottom of the system above but haven't put a filter on it or taller feet yet. It helped temps a lot, and the PWM fan helped noise a lot too.
Here's the new one, the cool thing about it is that I'm going to install a PicoPSU in it when it arrives on Friday, I got a 192W one from Mini-Box.com
. The V2 already has holes cuts for DC power so it was basically made for this option and I couldn't resist. With the SFX PSU out of the way I have room for a respectable cooler, though I had to use a 92mm tower instead of a 120mm one since there was only 146mm of clearance. Oh well.
So now I'm left with a few options...
1) Button it up how it is and call it good, no mods.
2) Remove my 60mm fan and use my 2nd 4-pin fan header for a push/pull one the heatsink, no mods but no airflow in/out of the case either.
3) Remove my 60mm fan and mod the bottom of the case to hold a 120mm intake fan (also requires devising a new mount for the hard drive).
4) Same as #3 but use this fancy 140m fan
instead (the only 15mm thick 140mm fan out there and the only one that will fit).
6) Go with the push/pull and build a duct to direct air from the heatsink out the back of the case forcing air in from the other vents.
7) Take the fan off the heatsink and try only using an intake from the bottom blowing upward to cool the "passive" heatsink.