First off sorry for the late reply, I was away from the forums for good bit of time.
The best option for having wood farmed at 1 is to collect it near 1, it can then be used there or used to restock. Shorter pathing to calculate and less travel time, this should prove true for all bulk produced items from my observations. (In the case of stone its the reverse, have small stockpiles at -# depth to gather into larger stockpile)
In my opinion the choice of using restock thresholds for moving production is all about where you want the gnomes to spend more jobs at. IE do I want to be hauling the coal longer distance or the logs to make them.
In your case I would go with moving logs and other items down after collecting them higher.
Tip: Make two stockpiles at the end location for an item, make a small (1-3 loads) stockpile pulling from a collection area, then make a lower priority larger stockpile next to the small one and pulling from it. Helps make sure all workstations have some of what they need before gnomes try to move entire harvest loads at a time.
It is entirely possible to use mechanics to get gnomes to drop items a long distance, however a simple design will require player interaction to function.
Here is a picture of a simple setup I used before that does not require very much engineering but takes player work. http://i.imgur.com/BKK8S1K.jpg
(The fence or wall should be complete)
A single handcrank can power a hatch (IE place anywhere), place stockpile in locked in area, once filled remove stockpile and order dig hole on stone floor in locked area, rebuild stone floor in locked area.
At that point the locked in area should appear as it did when you started, and all the once stockpiled items will be on the hatch, remove power and unsuspend stockpiles.
Notes: Gnome power can be unreliable risk of fall death possible, some stockpiles will need to be suspended for ease of use, and last don't drop items on gnomes heads death can occur.