Have you considered a bullpup?
Basically, you get an M16 length barrel in a CQB configuration. There are quite a few different designs floating around. Off the top of my head:
L85
AUG
FN2000
Type 96 (so far only RS makes this one, I believe)
The L85 and the FN2000 take M4 mags, although I understand that the G&G version of the 2000 (the only one on the market ATM) has a fitment issue with non-hicap mags. (There's a protrusion on the gearbox that intrudes into the mag well, right at the point where a hi-cap has the fill port. Mid & low caps don't have that fill port, so the protrusion strikes the top of the mag. It may be solvable with a bit of careful surgery on the mags, but I have no further details. Fortunately, there seems to be another thread in this section on that issue...)
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