The more current you draw, the hotter the converter will get--basically all the excess power gets converted to heat. Ie, (12 V-5 V)* amps = watts
. Milliamp draws aren't going to heat things up much (7 V * .250 A = 1.75 watts heat).
As for wire, you can get some pretty good speaker wire for much cheaper than much of anything else. Like $22 for 250 ft of 16 ga (
ebay), or even 12 ga. It's pretty flexible, has ground marked on one side, and will take most of the light and some of the moderate currents.