Hi Healey Z,
To answer your first question, YES, many of us have added fuses and/or split circuits for better protection with some also adding upgraded harnesses.
As for the fuses mentioned, British fuses are designed differently and 35 Amp and 50 Amp Lucas fuses translate to 17 Amp and 35 Amp US. With the 35 Amp US fuse only supporting the horn, all other protected devices (Brake Switch/Fuel Gauge/Rev Counter/Wiper Motor/Flasher/Heater Switch-Blower) are protected by the one remaining 17 Amp fuse. As you have already concluded, a number of key electrical components are left unprotected and vulnerable.
Keep in mind that when the Healey was designed and manufactured, thin wiring gauge was up to supporting the low draw of all electrical components provided and the very few options commonly available. Today, additional electrical demand is being placed on these circuits by much higher powered head and driving lights, added radiator fans, more sophisticated sound systems and even air conditioning and cruse control. To address this updated demand, many of us have either separated and upgraded the wiring supporting these devices or, at the very least, incorporated additional fusing.
For my part, I have chosen to incorporate added in-line fuses on all critical and optional circuits (approximately 13 additional) and now have separate protection through a cabin power master and individual headlight, driving light, parking and panel light, license plate light, fuel pump, OD solenoid, radio and power plug fuses.
I have chosen in-line carriers as apposed to installing an additional fuse block for the ease of incorporation and hide the additions. This, however, has required that I also create a directory of fuse power, coverage, and location as an assist for my ageing memory.
Hope this helps,
Ray (64BJ8P1)