So, what I did on the new one was to take 5/32" balsa and cut three pieces, middle, inner and outer (Duh!). Then, I split the middle piece with an x-acto and applied coat of ambroid to outer piece and two pieces of middle piece. I inserted a piece of .2 carbon veil and glued them together, leaving a gap for the gear wire to pass through. After it dried, I placed it around the wire and glued on the inner piece, again using a veil sandwich. Sanded to shape and done.
I think this is stronger and allows enough movement of the wire inside to avoid as much deterioration as the earlier model. Here's a pic after the rough sanding: