So I gather I should avoid oil-less motors all together then? It is for longevity reasons or are they just not able to build them with sufficient capacity for proper air tool use?
I would avoid oil-less and avoid belt driven for 3 reasons
1) they're typically a cheaper design that will not last as long
2) they're a LOT more noisy, and you only get one set of eardrums
3) they're not as repairable if something breaks
I lived with the biggest 120 Volt compressor you can get from Craftsman (Red, vertical, 33 gallon I think) for 5 years, and I had to wear earplugs every time it came on (frequently by the way). Then I got a 60 gallon oil lubed belt driven (Kobalt from lowes, new for $270), and oh what a difference it makes.
In terms of the idea of a wall mounted compressor, there are entire threads here about people trying to
reduce noise and vibration of decently quiet and smooth compressors using hockey pucks, special padded mounts, building seperate sheds/rooms for them, etc.
By bolting a compressor (especially a noisy one with lots of vibration) to the wall you would be
amplifying the noise and vibration, and in my house I would worry about it cracking drywall mud in nearby corner joints, etc.
My 100A service box is completely full, so adding anything is going to get expensive, right?
Not necessairly - depending on what brand box you have and what type of breakers you have installed already, you may be able to install "skinny" breakers and put 2 where 1 used to be (look at my awesome terminology, clearly I'm not an electrician

)
What would be my best 110V option? I'm not looking to paint or sand much at all, so do I really need that much CFM? The Campbell Hausfield website says the wall unit + 2 expansion tanks would be ok for most air tools that I'm looking at (air ratchet, impact gun).
I'm more looking for a compressor to get me by for about 5 years doing automotive repair (not body work) than a big compressor to power tools I haven't bought yet and don't have immediate need for.
That's basically what I was looking for when I first started, a 120 Volt compressor that would last 5+ years to run impacts etc. You
can get by with an oil-less direct drive for that description.
But if I did it again, and I had to get 120 Volt, my first compressor would have been something similiar to this:
http://www.grainger.com/Grainger/items/1NNF4
Which can get quite cheaper if you can find a used one on craigslist. It will last and last, and if a single component fails (compressor or motor) you can buy an inexpensive replacement part rather than replacing the whole unit.