Sphag will not remain overly wet in the center if plants are potted properly and the pot is less than 4 inches in diameter.
I mix my sphag with a good bit of perilite and also place a styrofoam peanut(s) in the bottom core of the phal for the larger (>4 inch) pots.
New Zealand Sphag is my preference and the key is don't overwater it! You cannot soak your plant like you would for bark. You only fill the top 1/2 inch of the pot with water when the sphag is
almost dry.
Let it soak in and that is that.
I have used sphag in larger pots for my Phal. gigantea and used an upside-down net pot in the core for that one.
I had problems for years with bark mix and also tried s/h and Aussie Gold mix for my phals. NZSphag/perilite has worked great for me!
I became shy of sphag with phals early on due to rumor and then had a really ironic epiphany:
Background....I am an eye surgeon and we have a saying in surgery: The only way to avoid the risks of having surgery is NOT to have surgery. It's like a "duh" moment.
So one year at a flower show, I want to buy this really cool plant from Fishing's Creek and I asked Steve if it can survive in a different media like s/h anticipating a re-pot. He asked me why would I do that if the plant is thriving as is. I told him because I overwater plants in this media. He said....yeah, you know it: "Then don't overwater it."