I just put BB7's on my Karate Monkey. I used standard Jagwire brake housing (full length) and used a dremel to cut the ends and file them off flat. With the ferrules on the ends, I've had no issues so far
I've been using Alligator I-Links full length on all my bikes. They work very well. I like them much better than the Nokon's. The inter-locking sections are much nicer to work with over the individual beads.
I agree, the Nokon cables are overkill. Why spend close the cost of a new brakeset, for cables? Even the Avid Full Metal Jacket, is more than enough, and offers smooth one-finger braking, and decent modulation even with Avid FR-5 levers.