For the 1% setting for example, that's 1% spread across 8 chips, so 3.5mA from each for a total output of 28mA. Reduce the number of chips and that falls by 3.5mA each one you take off, at some point it will be too low to light the LED on the lowest modes. But those very low lows are really dim, probably too dim to be useful for photography. A standard 'low' mode, with the light in candle mode, is still much less light than a candle flame.
For that Qlite driver I linked earlier, that one is the second revision with a low-low of 20mA, the first version had a 5mA low-low and they had a lot of cases where it wasn't enough to light the LED. 20mA is still awfully low, I'd consider that the minimum below which you are probably going to have issues.
2.8A won't fry anything, it'll just shorten battery life if you run it on high all the time. I'd recommend not removing chips and using lower modes when you don't need max brightness. And the full output will still be there at the touch of a button if you need it. If you've crippled the driver by removing chips and find yourself in a situation where you need more light, you're pretty screwed. :)