I've only used the Streamlight TLR3 so I can't compare it to any others. I like it just fine, nice and bright at indoor distances, with a very secure rail mounting. I've heard others say that Surefire lights are better but I can't speak to that.
The heat shield is from Aimpro Tactical and the holes fall on either side of center, not straight down the middle. They are about 7mm apart. If you cut a slot in the heat shield I would be concerned with weakening the mounting bracket where it touches the receiver. If you could do it only where the sight pokes through, and not all the way from the rear end, it might work.
Thanks for the pics, did you use any kind of stain on those stocks? I'm thinking of darkening the wood on mine. I've always been a fan of your gun images, especially the blued S&W revolvers.