I understand exactly what he's talking about and I believe that the elkhide will stretch enough to fit any size bar. I've done a couple of handlebars with the stuff and both of them have cables under the wrap. You want to stretch it very tight or it will move.
I know that the suggestion to wrap smaller diameter bars with cloth tape first is on the site, but I'm sure it will show through. I found out the hard way that even a piece of masking tape under the wrap shows through.