So... taking all the comments into consideration, I quickly chopped the existing mockup to make a reduced-size Bronx Victorian structure. And it works nicely. In fact, it's perfect!
I think this is my preferred position. The two stories are a little taller than the adjacent structures, but this structure typically had 12 foot ceilings and the others look like 8 foot ceilings. But it's not overpowering and reducing the length keeps the alley way next to the chocolate shoppe, or track clearance in the first location. I think Nighthawks would go where that DPM corner store is temporarily located. I'm going to make that into an appliance store and have a Miller Engineering "Zenith TV" neon window sign for it. Next step is to change all the laser cut working drawings.