I do mostly subdivisiion design at present and do not mess with the width option at all. Frankly, I was so happy to be able to force the left justification which eliminates that choice that I started keeping it that way as default changing only to make a generic one-line note that I copy and edit.
Generally, our plans are so busy, we are happy if the notes have ANY place to fit. The basic rule is to put them where they are most readable and it is clear what they are referring to. If something has to give, I will let some of the text overwrite linework but only with very careful placement. Sometimes a longer than desirable leader may work better and I will do that instead. I have NEVER been forced into my option of last resort of crossing leader lines.
I started using autocad with a structural engineering firm that was just transitioning from all hand drafting. Their convention for detatils forced all notes into a 2" strip to the right of the detail. If you were carefull in the order of the notes this usually worked OK, but I was frequently unhappy with the clutter that was forced.
The idea of numbering reference notes is a good idea under many conditions. As long as you are CERTAIN that the drawing with the reference note will not be orphaned from its notes this convention works well. It is useless for my current application because partial copies of plan sheets can be distributed at any time to builders. Unless someone knows the required notes are not were they always have been they don't think to get the note area as well. NOTE: I know this could be solved by no longer issuing partial plans, but office policy is to charge a fee for a full plan that the builders don't want to pay.