Hi madmike,
With 3 CR123s in that configuration, assuming good quality cells, you'll have ~11 watt-hours stored energy. The vast majority of that stored energy will be delivered such that the combined voltage of the cells will be above the cut-in point for regulation on the M60 (output will stay constant for most of the discharge). I would expect around 130-150+ minutes of regulated runtime, followed by some fairly quick dimming, but for emergency use it should give you at least an hour of "dim" output with the cells basically "dead" but just sucking off the last of it. Someone who owns this setup and uses it could probably give better feedback on this though.
With 2 protected 17500s (AW), you'll have around 8-9 watt-hours stored energy. The input voltage through the drain will always be above the cut-in point for regulation (light will stay constant in output through discharge), and the cells protection circuit will suddenly shut down the light when they are "dead" so there will be no warning or dimming. Runtime till shutdown should theoretically be around 105 minutes.
Ideally, It would be better to have a 2x18500 body, say an FM or Leef body, so that you could run the larger diameter cells, and get pretty similar runtime to the CR123s, or 2x18650 body so you could have even more runtime, but it depends on what size body you really want. The advantage of the 3 cell body length is always maintaining backwards compatibility with CR123s on the M60.
Sure you'll loose some runtime on 17500s... but in reality, in actual use, you GAIN runtime most of the time because you can top off the cells after each use, so you are always starting fresh from whenever you have that chance to top off. If you are using CR123s, the only way to always walk out the door "topped off" is to replace cells prematurely, or always carry a spare set of cells. I'd suggest carrying a spare set of cells if you use the light a lot anyways, but that spare set could be either primary or rechargeable cells. Rotating a set of rechargeable cells is also a great way to go. Especially if you couple the concept to a good quality charger that terminates properly, like a Pila IBC, that way you can just leave the cells on the charger. Just swap em when you want to.
Eric