Welcome to the forum! You should go as true to size as possible with the Nike Mags. The friction caused by loose shoes often causes the wires to fray or get damaged, and eventually will cause the lights to go out. I'm typically a 9-9.5, I got a 9.5 and in about 3 weeks of casual wear, one shoe went out on my completely and the other's battery went dead. Because of the stretchy material, I'd highly recommend a really snug fit. This should make them last a lot longer as there won't be too much moving around when you're walking.
Modding is definitely very possible. @jjdelp currently sells the conversion kits for the LED bubbles for 70 a pair. He also does the modding for you at a different price if you're not willing to mod it yourself.
The foggyness on the bubble can easily be helped by applying a clear coat. I would highly suggest getting a matte clear coat to maintain a bit of foggyness and not have too much of a sheen to the LED bubble, however I liked the clarity and gloss coat that I used with some nail polish acrylic.
Another way (I havent quite tried this yet) to mediate the LED bulb issue in pictures as well as videos is to disassemble one of the RED leds (making one less for the bottom). The RED led should show up less on the video and should make it a lot clearer to see in photos and video.
Let me know if you have any additional questions.