I've bought two ZA3 intending to use them as Monoblocks. However I do see that mono mode drops the SINAD from 87 to 74 which is considerable. If I don't actually need the extra power it provides but instead want the headroom and isolation that monoblocks provides. Wouldn't it be better to just use them in stereo mode but just 1 channel connected

I haven't seen the test of max power vs distortion in stereo mode but only 1 channel driven. I will do the test when I have time and hope that it's audible. And I am using these with the Magnepan LRS which are power hungry. I can easily tell the amp is quite powerful in mono mode since they can push the LRS to a considerable volume without hearing any stress. I do feel they aren't that transparent and on stock op amps(this seems to be the craze nowadays). I am saying this from the following experience where I have tested the following amps extensively with the LRS - Cambridge audio 651W, Canto M300 Monoblocks, NAD T975 (using only two channels out of the 7), DIY Hypex NC500 OEM Monoblocks, and the best amp I've ever heard the Benchmark AHB2 which is absolute bliss but I can't afford it.
The V3 mono is my goal for the LRS with the ZA3 used with the Marantz 8805 processor via XLR to power the LCR