Turn it on its head and the temperature drop (at fixed pump speed) is proportional to the heat being lost through the radiators, irrespective of boiler output. You may start to get confused! The boiler output determines the temperature
rise across the heat exchanger, while the radiator output determines the temperature
drop. You actually want the temperature drop to be large, to decrease the return flow temperature. Increasing the temperature rise achieves nothing except a higher temperature. Of course the rise and the drop are also the same
The answer to these confusions is of course that none of the factors is fixed. As TRVs close, the flow rate decreases but so does the total radiator heat loss and the boiler will also modulate down. It isn't clear whether the temperature change across the heat exchanger will rise or drop. In practice it will usually drop because the output temperature is fixed (by boiler modulation) and thus the temperature drop is driven by the heat loss from the radiators (the flow rate will never decrease as quickly as the radiator heat output). You simply won't maintain a large temperature drop when several TRVs close, and probably won't even manage to keep the boiler firing continuously unless you have massively oversized radiators.
Max is usually too high for the pump. Turn it down to the lowest setting that keeps all the radiators hot. You may have to balance more carefully if some of them go cold. If you can't balance them all to get hot then you'll have to turn the pump up. In practice, 2 is usually the setting, and 1 is just too low for anything useful. Decreasing the pump speed will generally increase the temperature drop across the boiler, but the result of that may be that your boiler cycles more often as the output temperature gets too high. That kind of defeats the object so far as efficiency is concerned but there isn't much you can do about it except buy a boiler that modulates down lower (which in itself reduces efficiency!).
Your minuscule temperature drop could be caused by the pump being too high, but your measurements still look dodgy to me. 59C at the inlet, 57C at the outlet (you said 2C drop) and 54C in the middle is not healthy. The outlet isn't at the top is it? Where is the "middle"? What about the bottom of the radiator? Have you tried measuring the temperatures right at the boiler inlet and outlet?
Regardless of what your thermometer might be convincing you it does, the reading from a copper pipe will not be accurate. A painted pipe will be better but may still be inaccurate because cheaper thermometers simply can't focus on an object that small. The reading on a painted radiator will be fairly accurate but won't necessarily match the flow temperature precisely as the water quickly moves (or perhaps not in your case!) within the radiator.