Frank,
if i do all the ceiling with 1 inch 703
One inch is not thick enough for a ceiling absorber (or any absorber) because it absorbs highs more than lows. The goal in all music applications is to have uniform absorption over a wide range of frequencies. For a ceiling I'd use 2 inches thick minimum, and four inches is even better.
Now in Ethan's FAQ, he say it is better for low ceiling studio to put as much absorber possible to give a high ceiling impression. Is it still true with a studio with those dimension?
Yes.
Should i not count the ceiling isolation and only calculate the reverberation time for the wall surface only
No, the absorption on the ceiling is part of the total and must be included.
--Ethan