A cursory read of your post suggests what you wrote makes sense.
However, I do not fear Form 1116. Tax software does a good job with it nowadays. We have filed 1116 for many years now. I think it's no longer a big deal since the software folks have finally caught up with understanding how to program it ... at least for mutual funds.
It's all about market timing, uh, I mean rebalancing, uh, I mean opportunistic rebalancing, uh, I mean short-term opportunistic rebalancing due to a short-term change in one's asset allocation.