Because of its diameter and the thinness of its wall, BT-80 initially appears to be a bit too fragile for anything larger than a slow-burning E9. But I don't doubt that you are right - once the internal structure is installed (centering rings, coupler, motor mount), it would probably be plenty sturdy for mid-power. In my project, I could forgo the coupler lining and just install extra centering rings along the MMT for extra support; I'll think about it. I know that this is counterintuitive, but I might still give the section above the upper centering ring, including the parachute compartment, a double wall (up to the inserted nose cone shoulder). With the plywood centering rings that I'll be using and the TTW fins, the fin can should be OK, but the forward area would otherwise be unsupported by any internal structure, and it could get rather stressed at deployment time.
This doesn't totally answer Bryan's question, though. Remember that he asked at what point would either reinforcing the BT-80, or else switching to the much stiffer blue tubing be advisable for his 38mm project. But to really answer the question, I think that we need a little bit more information, such as: how long of a BT-80 airframe are we talking about (how much BT-80 in total?), what is the size of the nose cone, and how much does it weigh? Oh, and will the fins be surface-mounted or TTW? Bryan, you don't have to reveal every detail of your design if you don't want to, but a little more information of a general nature could be helpful in addressing the issue. Otherwise, the answer might be, "It all depends." Also, although you said that you will mostly just fly it on 29mm motors, is there a chance that you would want to fly it on 38mm motors some day?
MarkII