In your OP you said that you are looking to decide what you want to do. If you want to know more about what is going on try talking to an astronomy professor.
They can condense some of the ongoing research projects. For them and in the other fields as well.
But if you have no introduction to the subject matter, then some papers will prove hard to read. This might be true for most papers you come across in any field.
Just to answer your questions (I am not 100% sure on it all so someone here may correct me):
In EM and optics we see that intensity decreases according to the inverse square law I~ 1/r2. Well, for galaxies that are very far away (at high red-shift), their intensity decreases with proportion to 1/(1+z)4. Here, z is the red-shift of the source galaxy. This is what they call cosmological dimming. At high red-shift the effect of dimming is much quicker.
Space, as empty as it is, has a bunch of dust scattered throughout certain regions. Some places are much more dusty than others. These large dust clouds can end up with there own emission/absorption spectrum just like an atom. Not for the same reasons as an atom, but they can have their own spectrum like an atom. This is the dust spectrum. And it often makes your data harder to read sometimes.
**Here is where I would really appreciate someone jumping in and correcting me**
**Looking at a textbook I am more convinced that they are talking about looking at different galaxies (with respect to higher red-shifting) than I am in my answer below. I went back to the basic definition for red-shift in flat space time and my answer doesn't make sense.**
So, I mentioned source already, it is the object we are looking at. The object emitting the light we want to see. And we spoke about red-shift. But red-shift does not mean distance per se. Red-shifting is what happens when a wave source moves away from you (Doppler effect). It just happens to be that higher red-shifted galaxies are further away from us. So, when it says that red-shift increases it means that the source is moving away from us, I believe it means it is accelerating away because if it was moving with constant velocity the red-shift would remain constant.
The last statement, I am not too sure can you post the article you are reading, but it seems like for one reason or another, when choosing wavelengths to observe in you want to choose from the wavelengths that would be observed by the dusty galaxies. Somehow, the dust counteracts the effects of dimming. **Again, can anyone please correct me. Thanks in advance :)**