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Just know re lateraling that outside of Biglaw deals regularly get staffed with much less leverage. Ive been back and forth between Big and Mid law and in the latter handled many deals as a partner with only a junior associate or counsel with a brand new first year. Having a mid level as an 8th year would be fantasy.
There is no downside to seeing what's out there and having some conversations to see if the grass could be greener elsewhere. You have very legitimate reasons for wanting to lateral, and depending on your credentials and firm, you could possibly lateral into a counsel or even income partner-level role elsewhere as an 8th year. Despite any goodwill you've built, it sounds like your long-term prospects could be better with a firm that has a larger M&A group in your city that represents more local clients, which will help open doors for in-house opportunities down the road.