which way would you go with this

Hawkfish and Butterfly fish don't make good reef candidates, if you have inverts and corals respectively.
Most Angelfish are unsuitable for a reef with the exception of possibly a Flame or Coral Beauty.
Flasher or Fairy Wrasses make a nice addition to a reef aquarium as Dingo pointed out!

 

I think I'll go with the damsels.

Maybe throw in a pseudochromis (spelling?) or whatever they're called. Should be able to do well w/the damsels I'd think.

 

i just pulled a pseudochromis out of my reef today because i hate them. they are annoying little fish

 

Royal Gramma..very colorful, fairly cheap, and will hold its own with the clowns

 

Pseudochromis' are pretty fish and remain small but their boisterous behavior more than makes up for their smaller size.
IMO, go with a Royal Gramma instead for color, small size and smaller price tag comparable to most Pseudo's.