I  understand the hesitation to  "cut up" a wonderful historical instrument. It does seem a shame. And like John says, the violin looking mechanical pegs look fairly authentic and are easier for old hands to tune. I have had to go to those due to some severe degenerative arthritis in my thumbs.

I guess it comes down to how valuable the instrument may be one day to donate to a museum for its place in history or whether to make it "playable" for the present and sacrifice some of its historicity.

John (good name), you have many options from which to choose. 

The most popular option with my customers is to replace the wooden tuners with either "Perfection pegs" by Knilling or Pegheds, which are a similar product.  Both of these mimic ebony violin pegs, but have secret mechanical guts in them which allow for very smooth and very accurate tuning.  They can seem expensive at first, but I hear that they save a LOT of tuning headaches for regular players.  Those with arthritis and other hand issues LOVE them!  And they look like wood pegs.

Machine tuners work well, but I think they are a "visual jar" to the smooth historic lines of a fine dulcimer.

Need to pick some brains, get some opinions...

 Seems I get quite a few older, 70's 80's era instruments that are quite nicely put together, except for the fact that they have wood pegs for tuners. I appreciate the craftsmanship, and history,  but if no one will buy them, they are relegated to be discounted wall hangers.  Most players that visit my booth at shows distain pegs, in part due to older hands....

  Sawing off the pegs (as plugs for the holes) and installing machine tuners seems the way to go. 

  But I don't want to "cut up" history either.....

What say you all???