There is no cable "snag." External cables work just fine, it may not look as clean at first but that's what bikes SHOULD look like.
If u have been watching Chopper building at the Discovery Channel, there are two schools of thought (1) Build farings and hide all the mechanical stuff to make bike look slick, or (2) Classic bike building where all the mechanical stuff are on plain view. IMHO, the classic look is forever.