I can only give youmy experience from (a)working at Radbourne Racing as a young mechanic and, (b) my experiences with my own (tuned) '650' engine.
(1) the additional piston weight doesn't seem tohave any noticeable difference in balance
(2) The inlet valves can be enlarged by 2 mm---leave the exhaust valves 'as are' At Radbourne Racing (admittadly over 50 years ago!) we just refitted the original head back on to the '650' barrels
(3) The '28' IMB wasn't available back in those days, so we used a rejetted original carb---the inlet port can be opened to match the 126 bakelite spacer to improve flow.
(4) A 35/75/75/35 cam is a good choice--simply time it to the factory marks on the sprockets--but always use NEW cahin and sprocket kit. Fit NEW cam-followers.
(5) I cannnot remember us ever having a problem with the opened-up crankcase. You coulduse 'wellseal' forthe spacer-plate/crankcase interface and the thin copper barrel seal-rings between the spacer-pate and the bottom of the barrels.
(6) Not a point that you have raised, but you will probably find the spring-loaded push-rod tubes will seal better, look better and are definately easier to fit . You can have the head fitted on the head-studs and almost down to the barrels before you need to fit the spring-loaded push-rod tubes, they will compress that much---springs at the TOP.
If you would like to contact me direct, I have written down my thoughts on the tuning of the 126 engine (595 or 652) and you are welcome to a copy--
[email protected]