Tim, thanks for PM'ing me. Admittedly, I haven't followed the use of piezo pickups on the bass guitar side, but I think the electronic issues are probably the same as for upright bass pickups.
A piezo pickup actually has an impedance that varies with frequency, because it is electrically similar to a capacitor in series with a voltage source. It has to plug into a preamp or amplifier with high input impedance so that the pickup isn't loaded down at the lowest frequencies. That would suggest using the 500k control.
On the other hand, when the 500k control is at its midpoint (the worst case), it has a 125k output impedance, and if you consider a 20 foot cable with 40 pF of capacitance per foot (typical stuff), you will lose the high frequencies starting at around:
1/2/pi/125k/800p = 1591 Hz. So, the control plus signal cable will kill some of your highs. A regular magnetic pickup with a 500k control will do the same thing.
You could minimize this by using the shortest possible cable that you can get away with on stage.
This is just the general problem with putting a passive volume control on a piezo. Notwithstanding the hassle of changing batteries, a preamp in the bass would solve this problem. It needn't be complex. I have a DIY friendly design at my website for a "bare bones bass preamp" that might just do the trick here.
Note: Since I'm relatively new to this particular subforum, I should mention that I have a commercial interest in all of this stuff.