I asked D9 about fabricating a lay-flat bracket to use with a 5 3/4" headlight and got an unbelievably detailed summary about using small gauges to compliment the smaller light. Now I'm definitely leaning in this direction. I'm going to copy it here as it answers most of your questions, just not the durability. Lots of links and pictures. If money was no object I'd go with the Motogadget gauge. The 2 1/2" gauges with integrated warning lights look great on our bikes, much more complementary size for the slimmed down look.
---from D9---
IMO... if you're going with a 5 3/4" headlamp, the stock instruments are too big... in any configuration.
That said, have built brackets for dual stock instruments with small LED's in place of the
standard warning lamps, which does make for a somewhat lower-profile setup...
http://s192.photobucket.com/albums/...llery I/?action=view¤t=CJ12thruxLED.jpg
... but viewing the bike as a whole, in any view but the rider looking down, with a 5 3/4" headlamp, the stock instruments due to their vertical
bulk are going to visually over-power the downsized headlamp and probably look somewhat out of balance... willing
to build it though if that's what you want.
Have you considered a single standard 2.5" mini-speedo setup instead of using the the stock speedo?
http://newbonnevilleriders.com/forum/showpost.php?p=39035&postcount=3
http://s192.photobucket.com/albums/...allery I/?action=view¤t=Blacknight3.jpg
http://s192.photobucket.com/albums/... Gallery I/?action=view¤t=d9_mini04.jpg
http://s192.photobucket.com/albums/...llery I/?action=view¤t=DavidC_rider.jpg
Bracket kit designed to fit with most riser-fixed handlebars - stock, M, mini-M, Ace/Clubman, etc.
Not designed for use with clip-ons, additional modifications required. Can also build a similar
configuration for a 1 7/8" speedo, although LED warning lamps would need to be built in to the bracket or
you could install them in the top of the headlamp, unlike the 2.5" mini speedos that have the warning lamps
built into the face of the instrument.
In the US, most owners converting to mini speedo use the #03-0748 from MikesXS or
the 15-0032B from Dime City Cycles.
http://www.mikesxs.net/products-46.html#products
http://www.dimecitycycles.com/vinta...ack-face-led-speedo-speedometer-15-0032b.html
Mini speedo Information post with links to instrument vendors and wiring diagrams
http://www.newbonnevilleriders.com/forum/showthread.php?t=3572
converting to mini speedo requires wire splicing & soldering.
Another even smaller, lower profile (and substantially higher quality) option that would look great with
a 5 3/4" headlamp would be a Motoscope Tiny -
check out the three "Martin T" pics - bracket can be built angled or flat.
Kit includes bracket, machined cup, gaskets, mounting hardware.
http://s192.photobucket.com/albums/z276/D9davidnyne/Owners Gallery I/?action=view¤t=MTO_1.jpg
Wire splicing and soldering required as well as conversion to magnetic speed sensor (available from Motogadge/Spiegler).
http://www.spieglerusa.com/gauges-instruments/motogadget/series-tiny.html
http://motogadget.com/zubehorartikel/sensoren.html
Push buttons
http://www.spieglerusa.com/gauges-instruments/motogadget/instrument-accessories.html
http://motogadget.com/de/zubehorartikel/drucktaster.html
Bracket cost same as mini speedo bracket, speedo not included. Now also offer a substantially
smaller, super low-profile push-through bracket design for the Tiny... no pics yet but soon.
Alternatively, Motogadget also offers their own cups, brackets and mountings - the tiny is small enough
to mount inside a stock headlamp, not sure if it'd fit into a 5 3/4" but maybe.