OK, what I have gathered from the feedback so far is that a narrower (1.375 - 1.5 inch wide) 26" diameter tire will come pretty close to replicating the rolling/pedaling feel of a 700C tire without feeling harsher, and would be faster for accelerating. The larger diameter tire will cover more distance per pedal stroke, and therefore will be slightly faster.
I will proceed with the above understanding, so here is hoping I have not misunderstood anything.
