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Yes, hard lines expand less than stainless steel flex lines. Think of it this way: When a line flexes, it must be "soft" enough to allow shape changes. How much this effects your system, I couldn't tell you.
Going to a smaller front master will probably give you a softer pedal, not a harder one. You'll gain more leverage though, so your required pedal pressure will go down. If you are comfortable with the current pressure, and want a firmer pedal, consider going to a larger rear master cylinder.
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