If you aren't drag racing or sled pulling, the 1. 25" iput is fine. I used it in Sickly @ 800 hp. Pilot bearing/bushing remains problematic. Bronze doesn't last as long but doesn't hurt the input when it wears (unless you let it go until the input wobbles enough to hurt the bearings--change the bushing as soon as you begin to need more pedal travel for disengagement. ) Needle bearing lasts longer if alignment is perfect--check the bellhousing hole to be sure it is centered around the crank--but will trash the input if it goes from heat baking out the lube, or misalignment, or overuse. Don't sit at lights with the pedal down, etc. south Bend has a big ball bearing that may prove better over time. They also have a Kevlar bushing that is good IF the hole in the flywheel is drilled and bored exactly on center.
As things stand now, even if you drive with not too much clutch usage, take it down and change the pilot bushing or bearing regularly, probably around 75,000 miles to be safe. Inspect the disk for any cracking ofthe hub, etc. I have seen a lot of destroyed pilot bearings, especially the earlier second gens. I'm told the grease was upgraded as well as the lip seals around 1997-98.