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So, in this case, what would happen when I turn on my headlights? Wouldn't they then be running off the battery? i.e. - the regulator would see this constant 12V from the direct battery connection, so the alternator would not kick out more voltage until the 12V+ from the battery dropped below whatever threshold the regulator needs to turn on. Isn't that not good?

I just want to make sure I understand all this.






Turning on the headlights will have no more effect on the charging system in this situation, than it would in any other.

Accesory load will MORE accurately be read in this location. The regulator will maintain a MORE steady voltage than it ever did, doing it this way.

As for the dimming headlights, it may help, but only if the alternator is up to the task.

And yes, 12 G should be fine. I believe the factory wire is only 14 or 16.