I don't tend to cut too deep either as I hate the noise so much and try to get away with as little work as possible Works fine.
I'll make some tests on the cut depths to see what actually is the optimum for each situation. Leds and their lighting power have a crucial role to play...
Try to make some V cuts as well. They tend to be a bit brighter, but thinner. They need to be done with a router or CNC, though.
The angle and depth of the cut is pretty important here, though. A 45degree (2x90deg.) will give the optimum light output. The rounded shape will have a larger reflection area, but the reflection at the top is less efficient. You will also get a wider viewing angle, so I guess it's a matter of application.
This kinds of cuts are bit hard to make by hand. Well, the round edge isn't that difficult but the rest needs the router or some other means to hold the tool steady and upright. But like you said, round cut is generally the best way to go so...
japala I just wanted to say, you're probably one of the most influential modders in the scene I'm been following your mods since 2002 and I remember when you made the ice wheel and the glow pad. Keep it up! this is an interesting idea I generally don't do routing work but this works out nice. I especially like the slow fade, I feel you could do a neon light inspired theme