To the OP, try leaving the front sight on, removing the rear sight and keeping both eyes open. See if that makes it easier for you. If it does, then get a folding rear sight if you feel the need for one.
For working in close, like in your home, you may not have the time or space to deploy a BUIS, so if its not up, you'll have to make do without. As mentioned, you can use the tube of the MRO as rear peep for close work. I'd recommend practicing at the range.
I've had/seen USGI M68s (aimpoints) fail, so I don't think that battery optics are totally "bombproof". Also remember that your battery is a weak point, buy good ones and check them regularly.

