I've just finished experimenting with Epson's ABW mode on my 9800 with a Win 10 system and have the following results.
1. As long as R==G==B, it makes no difference what colorspace the source image is in. For example, if the original image is in ProPhoto RGB, converting it to sRGB or anything else produces exactly the same prints except for extremely subtle stepping in 8 bit mode. Even there, it's a tiny effect as the L* changes at each step are only about 0.4 dE76. I can't see them but if I photograph the print and bump up the contrast enough the tiny dE steps can be brought out. But selecting dither (see comment #4) eliminates even that.
2. The tone curve is significantly smoother than either driving directly to device RGB or through the highest quality profile in color mode. The reason appears to be use of K, LK, and LKK only inks (absent injecting a color tone) while the color mode will add in the M, LM, Y, C, and LC. even on a neutral tone curve.
3. The a* and b* values over the tone curve are also very smooth and don't exhibit the marked perturbations that occur printing in color mode. Likely cause is same as in #1.
4. Higher effective bit resolution with 8 bit drivers can be had by selecting the option to dither when converting to 8 bits in the Photoshop Settings main dialog. When this is selected gradients in 16 bit tiff files will be rendered smoothly. This happens automatically behind the scene even though the user isn't directly converting to 8 bits.