Thanks for the tips guys. I ordered and got in my DAG-2 last night and used it right away. I discovered that the hanger was out of adjustment by over 12mm in the left left/right plane and almost as much in the vertical plane. I got it to within ~3mm all around by yanking on it. I also realized I had too much B-tension as there was more space than necessary between the upper pulley and the cassette. With those changes the shifting quality is at least 90% better. I still get a tiny hesitation when shifting between gears 7 and 8, but that only seem to be when pedaling in the stand with no load. When I mount the bike in the trainer and put resistance on the wheel and pedal with my feet it seems to be almost perfect.
Re: rear cable run bend. I got some pictures of my calbe work, but haven't had time to upload them yet. If it helps, the diameter of the cable bend in the rear is around 4". Maybe I should have made it a bit wider. That is the tricky thing about the powercordz, you can't really unhook it and re-tighten it further down the line due to the damaged fibers. I might have to buy another rear cord.
Also I got a response from Powercordz re: the S5 cable bend bridge:
The cables can be installed without the liners. We recommend using the liner
across the bottom to increase the life of the cables.
Both options should be okay. If you are good with a dremel tool, you can
widen the slot. An there is no problem running the cable on the bridge
without the liner. One of the reasons, for using the liners is to reduces
the dirt on the cables. If you do run the cables without the liner, I
recommend adding some grease on the bridge to reduce the coefficient of
friction between the cable and the bridge.
Thank you for supporting Power Cordz!
I am going to try putting some Squirt lube down there. I am thinking squirt will work well since it is wax based and fairly 'clean' as in it won't attract grime as much as regular grease or oil.
Oh and to reiterate, I had already tried swapping in the stock SRAM pulleys before doing the hanger alignment. Did not seem to make one lick of difference so I will be putting the FibreLyte ones back in, they are both lighter and spin more freely.