Hmmm...I can't help with the use of the IQ switch with the TLE-5EX because my MiniMaglite has the Terralux TCS-1 tail cap switch.
As far as drop in LED bulb upgrades, you made the best choice that is widely available. There are CPF members that have made incredible custom LED upgrades to their 2 AA MiniMaglites but they all required a bit of work to get those results. As far as easy 5 minute upgrades, the TLE-5EX cannot be beat in my opinion. Seriously, that's as long as it takes. It takes longer to open the Terralux package than it does to actually put the TLE-5EX into the MiniMaglite.
I don't think that the TLE-5EX can be used with an aftermarket heat sink because it was designed to only be used with the original Maglite "Do Not Remove" bulb holder. I'll leave that to other more experienced MiniMaglite modders to address though since I never even attempted a heat sink modification to mine.
As for batteries, I use the Duracell relabeled Sanyo Eneloop AA cells that are commonly referred to here as "Duraloops" in my upgraded MiniMaglite. I don't notice a performance advantage (increased light output) to them compared to ordinary Duracell alkaline batteries like in my Fenix TK40, but I use them exclusively in my MiniMaglite (and all of my EDC lights) simply because they never leak. Alkaline batteries are notorious for leaking at any time, even when brand new, so I never mess with them in any lights (or any other electronic equipment) that I care for.
Light performance-wise, I do not notice an improvement when using Duraloops to power my TLE-5EX compared to Duracell alkaline batteries. At least that's based on my own eyes.