"... the last thing the need is a 40% loss of capital from being in this high flying and rate sensitive "niche" sector..A 40% loss does not feel so great when you are 70/75 etc. It would be far safer at 75 to have at least 50% reset preferred's/laddered corporate bonds/GIC's etc"
How did high quality pipelines and utilities do in that "2007/8 type correction?" 
How did the corporate bond market do in that same period? 
And best of all, how did those rate reset preferred shares perform? 
I'll answer that last question. Issued at $25 per share, almost all fell below $15 per share which jus happens to correspond to your "the last thing they need is a 40% loss of capital" concern. But that's not all. As the dividend is reset on these prefs, these seniors have been experiencing a huge cut in their dividend income. 
Meanwhile the quality pipes and utes dropped far less in the downturn, have produced significant share price gains and the income they pay has increased annually.
No contest.