Yes I never really understood the reason for the PRM area being shoved at one end behind a cab when on the 350/360/450 it’s in a much more sensible place. However it does allow for a very pleasant 1st class area in the middle of the coach (even better since the refurbishment) but the issue of people frogging through to the toilet is annoying. Siemens are certainly the benchmark for quality modular products though and it probably wouldn’t take too much effort to move the disabled area to the centre of the train.
I suspect two reasons - one being that they wanted a single 1st area (though personally I think having two smaller areas with a door in between like the 321 has a lot going for it, particularly as one would be an almost European style 6 seat compartment albeit with a central rather than side aisle) and the other being that they needed the vestibule in Standard for standing purposes (which ScotRail don't as much as WHL and Far North services aren't known for being full and standing, and if they were used on the Highland Mainline etc it'd be as double sets).
That said, if they did need to have it in a middle section, I'd have done it more like the 350/4 and put it in the middle section of the middle coach, which wouldn't have "marooned" a toilet in the same way.
I think that 170’s have a slightly better ambience but despite the niggles of having the disabled area in the wrong place and the in-saloon casing for the exhaust pipes the 185’s are a pleasure to ride on with phenomenal build quality. The soundproofing is certainly excellent, they have a noisy engine yet inside it’s not at all invasive.
I like 170s, the main problem with them being that there weren't enough built, but I find 185s have an edge. 170s are sluggish and have small overhead luggage racks, for two, and the build quality is very poor with lots of rattles (though somehow they don't fall apart despite the oldest being close to 25 years old now). 185s as you say have superb build quality - like 350s you'd never guess their age - and the overheads are huge, plus the big engines make them quick off the mark. They aren't perfect (not least because of the lack of a pantograph and being very heavy) but they are a good, solid piece of traditional German heavy engineering, exactly what Germany is good at. They might not live out their full life due to the deprecation of diesel, but I certainly expect the similar 350s to last 50+ years without issues.