I don't think your KH is that high. No offense, but it's not clear what problem you're having. Is it the controller you're complaining about, the pH not dropping or the lack of pearling?
If the controller is not working, then send it in for repair - my experience with Milwaukee has been really good. If you're sure it's the controller that's limiting your CO2, just take it out of the chain until you get it fixed, and try running it w/o the controller. But I think this isn't your problem because:
1) since you've ran the CO2 reactor at highest capacity and the pH still isn't going down; and
2) the dial on the SMS goes down to 5.5, so it shouldn't be limited by your 6.5, or the fact that it reads higher than actual.
With respect to pH, unless you have other reasons to drive it below 6.5, there's no need to do it for pearling purposes. If you have fish, you may stress or lose them.
FWIW, I have a 120g with similar water conditions (and about 3wpg light) and you've described a CO2 reactor similar to mine, and even at 1bps, the plants start to pearl. With about your level of KH (mine is at 90ppm), my pH starts at about 7.2 and at about 2bps, the CO2 drives it down to 6.8 within a few hours, at which point my controller shuts down the CO2. The plants pearl consistently.
-P