I apologize for being a bit late to the thread, so I hope FFV5 will get this answer.
Reducing wear ring clearance has several positive impacts on pump performance. True, the head curve increases; however, the efficiency increases by a greater amount.
If we look at the pump horsepower equation, head is in the numerator, efficiency is in the denominator. For example, if head increases by 2% and efficiency increases by 4%, total power consumption will drop by about 1.8%. The actual results will vary as a function of specific speed. Low-flow, higher-head pumps will exhibit larger efficiency gains. High-flow, lower-head pumps will exhibit smaller efficiency gains.
For a specific example, Pumps & Systems published a paper last summer:
"With the tighter rings, the head increased about 20 ft (3 percent). The reduction in power was more significant-about 6 bhp (7 percent). Efficiency increased about 5 points (10 percent). The reduction in NPSHR ranged from 0 to about 10 ft."
So, not only do you increase potential pump capacity (similar to the impact of a slightly larger impeller), you do so at lower power consumption and lower NPSHR. (Note: in the example, they made special floating rings and cut the clearance by 75%. It is more common to use composite materials like DuPont Vespel CR-6100 and reduce the clearance by 50%.)
I hope you find this helpful.
raronen