@matdehaast and I were just debating that! I think we could use either. HTTP is easier for new implementations but I think ILP packets are better because we already have the channel.
So let’s say:
Alice does a query = Alice sends a packet to peer.settlement.config with an empty payload and gets back balance=200, settleThreshold=300, settleTo=200, minBalance=0, maxBalance=Infinity in the fulfillment
Alice requests that Bob adjust her settleThreshold to 250 = Alice sends a packet to peer.settlement.config a payload of settleThreshold=250