Well, I guess that the up-side here is that you're not concerned with a warranty because that left long ago.
("We don't need no stinkin' warranty").
Just to make a quick clarification here and considering that 'you weren't there' when the work was performed, the foam that you refer to consists of a foam disc approx. 1/16" thick and 1/4" in dia.
This disc is installed at the entrance to the hollow to prevent contaminants from entering the hollow which could result in a buzz/rattle in the shaft.
Once the foam disc is installed, the hollow is sealed.
OK, let's talk T/Ds (turn-downs).
When Predator determined the lower limit of a shaft's diameter resulting from a T/D, they did so with the greatest concern for structural integrity.
Go below their recommended lower limit and you're putting that structural integrity in jeopardy. That's where you lose the warranty.
The shaft is NOT meant to be T/D below 12.25mm, PERIOD.
When I do a T/D on a 314, which is daily, I stop at 12.3mm to give the client the benefit of a little added security with regards to their warranty. Their warranty is important to me even if they don't have an equal level of concern.
"I would like to take it to 12mm. Would this be a safe limit?" Predator says NO.
Look, as far as I'm concerned, you can do anything you want with YOUR shafts.
But trying to get them to play like a Z just doesn't make any sense to me.
If you want the play characteristics of a Z, just buy a Z. They are entirely different shafts, both in construction and in 'play'. A 314 will never play like a Z and a Z will never play like a 314.
You've already realized an increase in 'squirt' from the modification of the tenon. Further reduction of the diameter of the shaft to compensate for this increase will certainly reduce the wall-thickness of the hollow and weaken the shaft in the process.
What's disconcerting to me is that you initially had a broken/cracked ferrule and rather than send the shaft to Predator or a member of the Repair Network for replacement, which would have solved the problem and maintained your warranty, you chose to have your 'cue guy' make these modifications.
I'm sorry but I can't give you a magical fix. The damage is done.