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Hmm.... that at3035 is actually a pretty darn decent mic that is less sibilant than many others... What pre's are you using?
The sibilance and graininess of the at3035 can be brought out by cheap pre's imo.
The sm7 isn't an amazing non 'essy' mic to be honest.. but if the problem is the room, the sm7 is fantastic at cutting the room out of the equation. Best mic I've ever heard for that....
Fwiw, I think room treatment might work better or at least just as well as the 3035 because it really is a decent cheap mic... and for the record, I hate it when people say "room treatment' as if it's the answer to all recording woe's?!?
You should be able to pick up a cheap foam pack for $100 and at least try it out...
I'd recommend that over the sm58 for recording 100% of the time as I'm not particularly in love with the 58 for recording purposes. Ymmv...
Best of luck...
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