To answer your last question: higher sights are typically used for heavier-weight bullets. This sight might well put a Rem 38S12 (158-gr. LSWC-HP) spot on at fifteen yards--or whatever--with the 'typical' person shooting it. It seems to me that there are a couple of questions to be looked at.
1. Simply from a pragmatic viewpoint, does the POA correspond to the POI (Point of Impact) with your selected PD ammo? If it does, fugeddaboutit being "too tall." If it doesn't, you could consider changing your PD ammo selection...
If you do NOT have enough experience firing this revolver, you're going to have to get some. Shooting a lightweight 2" is a different experience, particularly as you develop the muscle memory for shooting your selected round and subsequent shots.
While you are practicing, try using an "Old Fuff quad five" drill--
1. Five shots
2. Five yards
3. Five-inch group
4. Five seconds.
This can be simply done with a sheet of typing paper, with no bullseye on it. Set up the distance, and set yourself the goal of getting the shots off in a controlled-rapid fire manner, but with no attempt to do it in five seconds. As you become acclimated to your ammo, firearm, you'll start to feel comfortable in speeding up. Remember that as you gain the acclimation to shooting this firearm and your hand gains conditioning, your POA-POI relationship will change.
2. Insofar as C&S did the work, I imagine that they requested your ammo selection at the time of the work order. IOW, what did you tell them; based on that, they probably used their knowledge to select a correct front sight height.
Check out some links to learning new sighting skills needed for snubby defensive shooting. I don't have these at hand--but someone may show up with a link.
Personally, I consider this kind of firearm to be much more likely defensively used while point-shooting, and that those are the skills I chose to develop most. Were it my gun, I'd just go shoot it--a lot--with my selected ammo. FWIW--I have a factory M&P 340, and the standard smaller-dot Trijicon is noticably shorter. However, I added aftermarket CT grips (the 405 / shorter one), and I find I rarely use the front sight. I have used the CT grips to teach myself point shooting.
edited to add: If you plan on this for daily carry, in a pocket holster, then I too share a minor concern about it snagging. However, lots of practice--including a draw (while the gun has NO cartridges in it, at least to being with)--will probably help you with that issue.
Jim H.