Back in 1.1 the patches were really big and sprawly. But they were made that way by someone else, and I don't know how to replicate it in the new system, and already spend a few hours just trying stuff to figure it out.
I have 0 interest in trying to fiddle with resource spawning, because the documentation is essentially non-existent, and I already tried for a few hours with no noticeable change for any of the parameters I tried.
So unfortunately, what's here is what we get, unless/until someone else is able to figure out the system and document it enough.
As for the whole sulfur thing, this is still a game. By necessity, things are simplified. Syngas is intended as an "easy" sink to dump excess fluid into to recycle it back into other fluids. Either to balance the refinery, or just wholesale balance your entire refinery around syngas.
For the steam thing, yes. You get more water because you're reacting the hydrogen in the hydrogen sulfide with the air.