Heya.
Firstly, depending on the tosses you would like to do, I don't suggest using a 1:1 ratio for weight between the head and handle.
Secondly, I do wraps with chains, shotguns, spirals, etc etc.... so long as you don't let it sit there, it shouldn't burn (and if it does, it shouldn't be too bad), and I would suggest Twist Link over Ball chain. When you say traces, if you are talking about moves like the glowstringy-around-the-neck thing, I would avoid doing that, though if you mean body tracing the way poi people have been talking about it, that's fine.
I think the main problem with not having chain directly attaching the head to something, is that although kevlar is fire resistant, having kevlar as your main connection will cause it to break down over time and it could snap I beleive.
Also, as far as monkey's fists go.... I've heard bad things about those in regards to how, if they fail, they can fail very badly. That being said there are many different types of knots that produce flames of equivalent size and weight to a monkey's fist knot that are not just tension knots.
Get the sleeves if you feel more comfortable, but do not mistake them as something that will protect you 100% from a burn. Also, more importantly, sleeves or no sleeves, try to avoid doing a wrap within with first 30 or so seconds of a burn as that could result in some fuel transfer which could lead to burns. ^_^
I hope some of this helps.
As for the weight of your handle for tosses, I would suggest testing out different weights and seeing what you like better, most people I know have suggested a Handle to Head weight ratio somewhere around 1:3.
Ciao.