Good questions, gumgardner.
As for the fraying inside of the shifters, nosed ferrules will eliminate fraying at the contact point within the shifter. I posted a few photos below.
As for the i-link mini's, 1.2's won't fit in the mini i-links, but will fit in regular i-links. Here's why: the inside of the links are not deburred. Some manufactures (as we've found with the i-links) don't deburr the inside of their components, leaving the inner surface coarse, which will cause fraying over time. Housing liners will fix this in some cases, as is the case with Nokon housing, but a liner/power cordz combination will not work within the mini i-links. Theoretically, you could manually deburr the inside of each mini i-link, but we haven't tried it and so we can't recommend it.
Also, all new Power Cordz systems are shipped with tie-off grommets (rubber pieces that protect metal-on-metal contact at the tie-off point), nosed ferrules (to eliminate fraying at any anchor point, i.e., your SRAM shifters), and housing lining (to protect from the cord at the bottom bracket). I know you want to work with your existing system, however, so send me an email at firstname.lastname@example.org
and I think we can work something out.
Thanks for keeping me busy this morning!