Whoops I forgot the smallest 185H was the 500, you are right it is the HLG-120H-C350 I am referring to. If you use the B version, you could dim as low as 35mA, although I am not sure how the efficiency would hold up driven that low (I will check). I have the HLG-185H-C1050B on hand and have tested the potentiometer method for full dimming to make sure. You could dim it even lower but I hear it is not advised to go below 10%.
Yes the AB is still a lot cheaper/PAR W, for example if you compare the $/PAR W at any given efficiency. The Z2 at 46.7% (350mA) cost $6.37/PAR W and the AB at 46.9% (900mA) cost $3.45/PAR W. I believe as you go even lower in drive current the AB would gain even more ground because at the lowest drive currents there is not as much gain from current droop.
I usuallly base the spacing between COBs on the drive current. If the drive current rises high enough, the cones misses the canopy and reflectors are required. I am not exactly sure at what current that happens but in my application (700mA) I find it tricky to implement reflectors effectively. You could use very short reflectors in that case, to try and shape the light to your canopy without reducing the even spread.
It is very hard (for me) to say how much reach into the canopy you will get or need. I havent sorted it out in my head whether the reach into the canopy would be reduced when we run softer, even if we maintain the same PAR W per area. But I can say this much, I run my CXA3070s at 700-800mA (24-28W ea) at about 30W/ft², with no LST or SCROG and my ladies sometimes finish up to 5 feet tall when they are from seed. As long as I cut out some of the underbrush, I get no larfy buds. In other words, as long as the bud site is directly illuminated it works out great, even from quite a distance from the COB (2.5 feet). But if the bud site is shaded out, I try to move it or prune it away. Since you are planning to use LST you should have no worries there