The 5M is a real club. It might bend parabolically when it bends. The problem is that it takes about 10 oz for it to bend. It is way, way
WAY too stiff for pencils. The blank weight is in the 18 oz range. It's comparable to an old Harnell 552. I would not want to plug with it, or even hold it when fishing bait.
It's a dead-sticking rod, pure and simple.
The 3M will handle 7 oz even tho Lami rates it 3-6. Put it this way--it'll handle more weight than a GSB 132 1M which is rated (wrongly) for 4-12 oz. Of the blanks you mentioned, this one is the most versatile. The 1209 is lighter, but is a faster actioned rod. You might find yourself tearing live eels off the hook if you were to use it for that. As far as breakage goes, the All Star 1209 was a very tough blank. I have no experience at all with Batson's version. If they're similar in action and durability, you may find that you won't be able to load the rod for casting plugs in the 3-4 oz range when it's fished conventional. It really comes alive right around 5 oz.
Another option is a Lami SB or SSB 136 3M with the tip trimmed back to accept a 16/64" tip. If it's still too long for your liking at around 10'8" or so, you can take the balance from the butt end.