Sounds like you're on the right track. Unfortunately, this one will probably never give you flowers on a nice tall stem - looks like what you might call a "runt". They happen frequently in this type of breeding. That said, go ahead and remove the blooms and repot - the practice will always do you well.
As for varieties that form good clumps - Klehm Growers in Illinois did some wonderful hybrids for this exact trait in the 90s, and they were really fun. They were all standard "Bulldog" types bred to species: insigne, insigne Sanderianum, gratrixianum and barbigerum. They also did some Maudiae types crossed with insigne. I've seen some divisions at Home Depot from them that were big beautiful plants and very reasonably priced (under $30). If you want to step it up a little, I can recommend Paph Inca 'Penn Valley' as an excellent choice. My guess is that a 3-4 growth division would run you somewhere around $50-70. Don't buy a smaller one. Don't let your experience with this one color your feeling for paphs. There are some great ones out there!
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