Dave my take is this, and this is obviously without any testing.
Certainly a skinny string has MORE stretch than a string with 16 strands as you pointed out.
Whether padding the loops quiets the bow, I don't know, but I can't fathom why it would make a bow quieter.
I haven't used any very skinny strings, but I also haven't even had problems with a string cutting through a tip. I believe that this is largely a myth which probably started when HMPE (dyneema and spectra) came out as bowstring materials, and someone said "HMPE is stronger than steel", which is true, by mass; and next thing you know the other guy says "if steel can cut off my limb tips, so can HMPE". Maybe thats not exactly how it happened but I doubt there was alot more analysis.
Dave, remember shooting that sinew backed ERC bow? probably around 50# ... it only has pin nocks, and has no overlays at all ... it's just BCY 8125 string against a little sinew and cedar. Well that bow shows just the slightest dents at the corners of the nocks after hundreds of shots. I figure that sines and cedar is 1/10th as strong as a glass bow tip with horn or phenolic overlay.
Tip cutting string ... I can believe that.
String cutting tip? ... that one I have a hard time with.