First, a properly designed sheave and line system should have significantly LESS friction than the conduit system, although if your prime driver is a hydraulic system at the
helm, I doubt you'll notice.
Traditional wire systems use oiled
bronze sleeve bearings. Ball bearings are not needed. Making these yourself will require quite a bit of good engineering. Loads can be VERY high.
Especially when using dyneema, you need to pay very close attention to sheave alignment. Everything has to be perfect to prevent chafe. How you will get the sheaves perfectly aligned over the distances involved will be a challange in the design process.
The dyneema should be sized not based on breaking strength, but rather on the amount of stretch. It is true that a 1/4" diameter dyneema will have a breaking strength similar to a
steel cable of the same size, but it will stretch a lot more. You need to upsize the dyneema quite a bit to be sure that the stretch is acceptable. You can not afford to have slack on the unloaded side to the point where the line can EVER fall off the sheaves.
While I appreciate the coolness factor of dyneema, be sure that you are using dyneema instead of stainless wire
rope for good reasons, and not just because it is cool.