You are right that it does use different DPI settings, eg for draft prints it will use a low setting and and high quality it will use the maximum possible setting. But I don't need to know that and it is always the same for high quality.
I agree that if you want to print much larger than would be ideal for that photo, eg at 25 pixels/inch, then you should use special software to resize the image. PS is not ideal for that, but I can't remember the software that is used.
The colour space will depend on the printer capability. Some will only do sRGB, so you need to use sRGB. Others will use ICM, so then you may be able to use Adobe RGB.
I worked with printers at times through my life and I always found them to be very difficult. I think its the interface between computers and mechanical devices that creates problems. Whatever it is, once I get them working I tend to leave them alone. Suffice to say that I don't try to make huge prints (the printer isn't big enough anyway) and I always send maximum resolution output to the printer. Resizing down never seems to be a problem. Perhaps it is a "feature" of my printer.