Thanks for your input! I will read a bit more into line traces.
I’m still fairly new when it comes to blueprints, from my current understanding/everything I found on it a line trace till now is they work by sending out lines from player input or other meshes like during foliage painting or the player running through the tracer line but mostly into one direction.
Is there a way to use line traces to have them spawn all around the mesh in blueprint like a bigger sphere casting them inwards and spawning on the hit locations?
If I manage to set that up then I could maybe control the individual scale and placing of the spawned meshes with a noise shader affecting scale of the individuals that can be potentially animated.
I’m still a bit lost on how to best go about the creating something like this with my limited understanding so any info helps a lot! 
For example why switching out the affected static mesh would be more of an issue then switching out the instances?
I will also try around a bit with the procedural foliage spawner maybe that is something potentially useful if its able to spawn from below as well and orient the meshes correctly.