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I guess I like the spelling Wallace more. Wallis is I think now generally identified with Wallis, Duchess of Windsor (her first name was actually Bessie), the divorcée for whom Edward VIII abdicated his throne in 1936. But of itself, there is nothing wrong with the spelling Wallis.

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You probably already know this, but just in case: Wally can also be short for Walter.

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I could see Wallace with those names. It's already an interesting mix of names, and Wally / Wallace seems to fit pretty well.

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Wallace Matthew
Wallace Michael
Wallace Andrew
Wallace James
Wallace Robert
Wallace Peter
Wallace Joseph
Wallace Alexander
Wallace Daniel
Wallace David

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Since Wallace is somewhat unusual and has something of a 'full' sound when said, I would keep the middle name on the simple, but still strong, and traditional side, to balance it out. :)