Menachem:
Serious question, what’s the big deal (from your viewpoint) with having a Rebbe picture on the eastern wall? Most Lubavitcher’s houses seem to have at least one picture of him on each wall. Should they avoid the eastern wall, or are you talking about only in an actual beis medrash? Would it be a problem for the Chabad houses where the rabbi’s house doubles as the shul?
This just seems like an arbitrary point to draw the line for someone who’s otherwise fine with meshichism.