Whatever you’re comfortable and competent with. My only advice, other than that, is refrain from carrying different systems a lot; ie: DA/SA semi auto v striker fired.
No, usually smaller guns ARE just as accurate as their larger versions, but they are more difficult to shoot straight. Size, grip dimensions, short sight radius, increased recoil-all make the smaller gun more difficult to shoot accurately, at least for me.
Personally, I would not switch out the hammer for a bobbed one. I have had the exact same gun that I’ve had for 34 years, and never had an issue with the original hammer. Try El Paso Saddlery for holsters. Their holsters hug the gun and offer slight resistance being pulled out.
Like you, I don’t go full bore with full house.357’s. In my 3”65, I use 158 SWCHP by Buffalo Bore and in my “ Model 10’s, I’ll use either 125 JHP Buffalo Bore (non + P), or 135 JHP + P Gold Dot in 38. Easier to get back on target faster