lights for basement room

Hi, I have basement room with 7’10” ceilings. I want to put light in a box around the perimeter of the room. Basically I will build a 8″x8″ box (as depicted on the picture) and put recessed lights to light the wall and another lights to defuse light from the ceiling. Normally it would be luminescent 4′ bulbs. But we really hate luminiscent lights. So is there any alternatives for the diffused lights?

In general, does this idea makes sense?