I personally prefer mains voltage whenever possible,the transformer being just another extra item that can fail in future
The cable for the primary side switching will be carrying less current at a higher voltage, so need be 1.0mm only,
Use flexible cable from each downlight,terminated into a choc box or junction box,dont try and loop twin+e at the fitting connection points or just stuffing connector blocks into the ceiling void,thats not permitted or good practice,allthough routinely terminated that way by diyers
Carry out the practical side with the care that you used for your diagram and you will do a satisfactory installation
Any electrical installation carried out should be tested for compliance of that installation,if that is beyond your ability,then have a qualified spark give advise and test your installation for you
Depending on the location of the install,other requirements,such as rcd and Ip ratings are to be followed,cable sizes are affected by length,routing through insulation,load etc
The install in itself is very straightforward,but buildding regulations and protective measures required by IEE regulations means that many of these type of jobs carried out are neither safe or permitted,so take care to follow them