I have been running my Arc-LS and SF KL1/E1 off 2x 1/3AA NiCd cells. Don't know what their capacity is, but I get about 1/2hr of brightness before dropping to moon mode. I find that sufficient since I charge them everyday anyway.
PaulR, I think you have some misunderstanding. Since the cells are hooked up in series, the capacity does not increase, only the voltage. Hence with 3 cells of 2/3AA, you will get 3.6V 1100mAh, not 3300mAh. With 2 cells of AA, you will get 2.4V 2300mAh.
If you were looking at incandescents, the starting voltage is very important since it determines how hard the filament would be driven. Hence the 3 cells setup would be more desirable for brightness. It would also be important in unboosted, unregulated LEDs since you need to meet minimum Vf of the LED for a bright light.
It is not so important in a boosted and regulated light, except in determining when the boost circuit cuts out to moon mode. And even then, one must remember that NiCd and NiMH cells discharge with a relatively flat voltage, so the cell would be fairly depleted before its voltage drops far enough to cause the circuit to go out of regulation.
And also with rechargeables, one should not allow them to become severely exhausted as it can cause damage to the internal structure resulting in fewer available cycles. This is a real possibility if we start out with a higher voltage (Vbatt) and allow it to discharge until moon mode kicks in at say Vbatt = 2V. Because at that point, each cell would only be about 0.7V Whereas starting with 2 cells at 2.4V, each cell would display 1V, which is a healthy point to recharge the cells.
In the case of the KL1, I'm not entirely sure at what point the circuit drops out of regulation and moon mode kicks in, but I believe that 2 AA cells would do as well as 3 2/3AA cells in terms of runtime and brightness, but be safer for the cells.
With primary cells, since you can't recharge them, you just want to drain them as far as they will go. So with 3 cells, when you change them, the per-cell voltage would be lower than if you had started with 2 cells.
BTW, if you already have a smart charger, it doesn't matter what size cells you use as it should be able to detect the change in dV as the end of charge cycle approaches. And if you have a dumb charger, well... you could still work out how many hours it would take to charge the cells up. The main thing is building an adaptor to allow the fancy-sized cells to fit into your charger. I've built a couple for my 1/3AA cells from a wooden dowel.