The battery packs do not affect the brightness of the Arc4. Using a 2x123 pack will not yield a bright light, only a LONGER running light. The brightness is controlled by the microprocessor, and once you set your desired level, it will not drive the LED brighter or dimmer than it's dialed setting.
As for using a Lux3 in the Arc4. I've heard what Sean has said plenty of times. The Lux3 hasn't shown to outperform the Lux1 below 700mah. I haven't had first hand experience with that thoery, but have heard it plenty of times from experienced modders on this board. The Arc4 doesn't drive the LED more than 700mAh at level 1, so it wouldn't matter if you had a Lux3 or a Lux1 in there...because there wouldn't be any difference.
The only difference i would know of, is if there was a binned LED (lux3 or Lux1) that had a greater effiency, or in other words, was able to convert the same amount of energy into more light than a lower binned luxeon. I believe this is how Peter was able to create (JUST A FEW) Arc4x's. The LED in the Arc4x outperformed every Lux3 and LuxI he has put into his Arc4+'s.
I believe the ONLY difference in the Lux3 is its ability to manage heat better. But be careful not to confuse this heat management with effiency! Think of it like a CPU. Consider this scenario:
You have 2 AMD Athlon 900Mhz processors. Your motherboard is driving these procsessors at the same voltage level and they are being underdriven so not to comprimise the lifespan of the CPU. One AMD has a 1 inch heatsink, and the other AMD has a 2 inch heatsink. Since both AMD's are driven at the same level, they produce the SAME amount of heat and performance...one just has better heat management. It may run longer by being cooler but the performance will be the same as the other AMD... but at these levels it doesn't matter.
If you overdrive both processors to run at 1.5ghz, instead of 900mhz, both processors will be able to do the same, but the one with a 2" heatsink will last longer before crashing or burning up because of heat management. But before the melt down, both processors are producing 1.5ghz.
The Lux3 and the Lux1 are both the same processors...one just has a better heatsink. Of course, we are only talking about these LEDs driven below 700-800mah.
If you want a brighter light at the same current, you'll need a more efficient LED. More efficient that the Lux3 or Lux1 Peter is putting in the Arc4+. For all anyone knows, the Arc4x might be using a very high binned Lux1...so what does it matter then if it's a Lux3?
I hope i hit this analogy on the head. I don't have experience with modding, but i've just taken into consideration what others have said about these LEDs. Forgive me if i'm way off base.