8 twist will stabilize anything that is magazine fed. 8 twist will also let you shoot lightweight varmint bullets.
7 twist will cause some lightweight varmint bullets to come apart from centrifugal force. I have had 53g SMKs come apart in a 7 twist.
I have had an AR15 with everything from a 10.5" barrel to a custom 26" barrel. My personal preference is an 18" barrel that is not a bull barrel. Bull barrels add unneeded weight unless you are hunting prairie dogs where the barrel can heat up. But for most people a standard profile is perfectly fine without adding weight.
As far as 5.56 versus 223 there has been several studies done showing a far amount of 5.56 marked guns actually having 223 chambers. Shooting 5.56 in a 223 will not blow your gun up. It might show some pressure on the brass but even that isn't anything to worry about. I have an AD with a 223 match chamber and it has only had 5.56 fired out of it without an issues at all. If shooting 5.56 in 223 chambers caused the gun to blow up we would hear about it a lot more.
And while you are building it install an adjustable has block. Most ARs are over gassed so the manufacturers do not have to do warranty work on a gun that won't fire cheap, underpowered ammunition. With an adjustable has block you can tune the gun and reduce recoil, reduce has in the face, reduce crud in the receiver and make the gun more reliable. With an adjustable has block that is tuned and a quality muzzle brake an AR will Feel like a 22.
That was most likely a defective bullet or bad batch. An extra 1" of twist at 223 velocities is not going to cause that much of an issue. I shoot 55 grain bullets through 2 different 7" twist barrels and have never had that issue in thousands of rounds.
Please show me links to these studies you talk about... The cartridge chamber dimensions are the exact same...HOWEVER, a 5.56 NATO spec chamber does in-fact have a longer throat dimension and different leade angle than a commercial .223 Remington chamber...Thus allowing you to shoot .223 Rem in a 5.56 NATO chamber, but can cause pressure issues if you shoot 5.56 NATO ammo in a .223 Rem chamber. This is fact, and not up for debate. If you don't believe me, then I suggest arguing with the people who designed and spec'd the differences between the 2, and tell them you think they're wrong.
Nobody said your gun would blow up, but it can... And it can cause problems. Just like shooting commercial .308 Win ammo in a 7.62x51 NATO chamber CAN cause issues because commercial .308 Win brass is thinner than 7.62x51 NATO brass, and the excess headspace in the NATO chamber can cause stretching that can cause a case rupture.
Also, as for the adjustable gas block, it is far from necessary. I've shot both, and all of mine have high-quality standard non-adjustable gas blocks, and no ill-affects, even shooting cheap steel-cased ammo, the rifles are just as clean, and are just as reliable as all the rifles I've shot and messed with that have adjustable gas blocks. If you want the cleanest and most-reliable setup, get a self-regulating gas piston system for your AR.
Gas blocks won't reduce your recoil, but they can change the bolt speed by adjusting the amount of gas that operates it, which changes the felt impulse, which can trick you into thinking that the recoil is more or less than before. Also, they don't make your gun any less or more reliable. That's just a manufacturer ploy to get you to buy into what they're selling. It's the exact same gas block as a non-adjustable gas block, it just allows you to adjust the amount of gas passing through the tube. You are, however, correct that they reduce gas in your face when shooting suppressed.