Yea I say go with the LPVO... I have a 16" 308 and it's main use is to carry through brush. Using a 308 as a CQ rig is overkill imo. FMJ is gonna overpenetrate like a mofo. Like, through walls, kitchen cabinets, to the outside of the place and then who knows where. At 16" length, a 10.5" 556 plus can would be the ticket. I run 11.5" 556 and a HD 870, both those have red dots. I have slugs on a side saddle if I need penetration.
BTW, Firing a 16" 308 inside a structure is pretty brutal. 556 isn't much better, need a can. It's about like a half powered flash bang and will definitely jar you without ear protection. I love my 16" 308, but to get the most out of it, I would go LPVO...