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You might be surprised with how your frame handles when loaded. After all, it seems to have been built for that.
It's a great looking tourer, and a great starting point to build a lovely bike. I'd spend some time perusing the functional thread, discarding most of the pron and expensive stuff. Mudguards, rack, cantis (or mini v), gears, etc.
Surely it's your bike and you build it as you like, but the frame is crying out for something else.
@Skülly I've had a google/eBay for Avid Shortys. They look great. My current brake setup (different to the above but I'm updating this as quickly as I can) is not ideal so I will consider that when/if changing. The faff of setting them up does bother me though.
I just hate the look of panniers. And the sort of deadness the steel frame feels when riding with a loaded one. My Brooke's bag does me fine. Also no gears for me! I just enjoy single speed too much.