Depends on what driver you can find, whether it's just buck (dropping voltage) or boost-buck which would allow running the LED at full power still after the battery voltage drops below that of the LED forward voltage.
Considering the light, I agree 2 or 3 parallel series of 2 (4 or 6 total) is better, IMO 3+ hours is the least runtime a nice light ought to have but opinions vary on that.
Since the driver is being matched to the light config, I'd sooner put the driver in the light housing unless you think the space for it would be a problem, or if it used electrolytic capacitors that you didn't want subjected to as much heat as there might be in a sealed (at least waterproof) light housing, though better drivers don't use electrolytic caps and it's one of the things that could be modified on a lesser driver by swapping in polymer, tantalum, ceramic, etc caps. It should work fine in the battery pack instead if you want it there, and unlike some light configurations you aren't making a significant difference in current over the wire and connectors like someone would if they had a low voltage higher current battery pack boosted later, though any wire thick enough to be mechanically durable as it flexes when you turn the wheel, should be more than enough for the current needed but on that point I advise using high flexibility, high count/small strand wire for longest life. Then again I don't recall reading about anyone having a problem with their wire but I wasn't looking for reports about that so...
2.8A vs 3A isn't much of a difference, keeping in mind many people drive single die ~ 3W LEDs above 700mA in flashlights with far less effective heatsinking than 1/4th of what your housing will have the potential to provide, and riding the bike you have the airflow to help but ultimately you'll have to build it and see how hot it runs. That's the thing with prototypes, you make the best educated guess and adjust if it doesn't work out as well as planned.
Assuming your heatsinking is good (I don't know the dimensions of the 'sink pic you posted), the small increase in current could be seen as a desirable improvement in output, though with some cheaper drivers you end up with an output current that while supposedly regulated, varies a bit with the input voltage.
I've no experience with that driver so I can only suggest seeking some info on it from someone who owns one.