5'6" is within the acceptable height range for 700c wheels. The boundary is probably around 5'3" when you need to switch to a 650c designed frame.
The 555 is, I believe, a compact geometry style, designed to be ridden with a lot of seatpost extension, so you select a smaller size than for a traditional style of frame. How much seatpost do you have showing (not that is matters much, but it is an indicator of appropriate size frame)?
172.5 cranks are very long for a person of your size and much too long for a small bike. The value you calculated, between a 160 and a 165mm crank sounds about right for you. Does this solve the overlap problem?
Either of those sizes would be appropriate. You may find yourself spinning faster in a lower gear ratio but that is not a bad thing. I doubt that you will find the effect "dissapointing". 160mm are too small for a big guy but not for you.