For anyone interested, there is a good article, complete with test results on the Gougeon "Epoxyworks" website on the subject of diluting epoxy:
http://www.epoxyworks.com/indexprojects.html - click "Epoxy Techniques & Materials" - scroll down to "Thinning WEST SYSTEM epoxy"
As noted in the article, solvent dilution of the resin resulted in a dramatic loss of strength (35% decrease after only a 5% dilution), possible potential shrinkage of the cured resin, a change in resin color from slightly amber to very dark amber, increased flamability and health hazards and no increase in water resistance or strength due to increased penetration. So, I'd say that the Gougeon technical staff has a pretty good reason for their feelings about diluting their epoxy and I would be very surprised if you can furnish any data that proves them wrong.
"Penetration" at least when it comes to boating woods like cedar, spruce and fir is highly over-rated. You can put just about anything you want on a piece of wood to "penetrate" it, let it cure or dry and I can probably take it off with one quick pass of the disk sander, down to bare wood. With the exception of end grain, most sawn and sanded wood is not a sponge with exposed, deep passages running through it for these things to flow into. You may be able to get thinned substances to flow a bit farther in than they would at full strength, but you're deluding yourself if you are under the impression that this is really going to improve the strength or water resistance over something like plain epoxy. Solvents evaporate out, leaving holes in the coating and as noted, also greatly reduce the physical strength of the substance. Strength-wise, on a wood like cedar, it's all a matter of the grain strength of the wood itself. Any decent wood glue is capable of exceeding the grain strength of the cedar. That's all the strength you can, or will ever, get out of it - no matter what you apply to it.
So in this case, the question then becomes "Can your CA spot welds and highly diluted epoxy even exceed the grain strength of the cedar?" ...and more importantly, is all that stuff worth bothering with when you can certainly exceed grain strength and quite possibly get better and more consistent glue bonds with a $4 bottle of Tightbond or a tub of Weldwood for less than $10? Even if they can achieve grain strength, they won't make the boat any lighter or stronger. You might save a few days of stripping or watching glue dry, but what's the rush? It's supposed to be fun and many of us enjoy building boats as much as using them. Personally, I always found it kind of depressing when there was nothing left to do after a build but sit in the garage and stare at it. The other obvious question would be how do you plan to fair a boat when the strips forming the hull are only tacked together in certain places? Most tools, whether sanders, planes, scrapers or even longboards exert a certain amount of pressure on the hull as they work. It's difficult to fair a surface that's moving and not solid.
http://www.amazon.com/s/?ie=UTF8&ke...=aps&hvadid=3014731341&ref=pd_sl_8toeeaphzv_e
I must be a crusty old curmudgeon, but I've seen so many first time strip canoe builders shoot themselves in the foot and screw-up perfectly good boats because they just can't follow simple directions and at least get one good boat under their belts before they start getting creative and re-inventing the wheel. There are some really amazing first-time stripper canoes out there, and there are some really bad ones. Most of the good ones were built by folks that stuck to the plans and simply followed the instructions.