Well after testing out the modified rig, it works and works well. The clip allows easy changes of traces once they get damaged (and they do get damaged alot). The addition of wire between the hooks didn't seem to bother the fish at all but I am going to increase the strength of that wire to 30lb. As you can see from the pic of the tailor below, they have a nasty habit of chopping off livebaits behind the head and in a dual hook rig, the only way you'll stay connected is with wire. I'm going to go with 5/0 Gamakatsu octopus black as my standard hook size as it matches the pike size nicely, but I'll keep a few in the 3/0 size for herring. Pike is definitely a favoured livebait, as they were generally eaten within minutes of being put down there, some were even taken before they reached the bottom, but I'm sure slimies and yellowtail would work as well. Hookup rate was excellent, around 90% of all hits resulted in a hookup which is why I prefer the dual hook rig.
I'm going to be throwing around some unweighted pike into the washes over the next couple of months, just to see if there are any big tailor or trevally skulking around that are ignoring lures, it should be an interesting experiment.