I'm sure someone with experience on high tech will be along shortly, but from my understanding, my approach would be this. Raise your light as you've suggested, ditch the LC, and lower your CO2 slightly until the fauna are happy. My personal view is that if you've got fauna in a tank, they're living things, and they above all else should dictate the conditions. Once they are happy, keep the CO2 at that level, and gradually lower the light. Once you start getting negative plant/algae indications in the tank, raise the light again a bit, and you should have balance.