Since this paint leaves a textured surface, is it possible to get water slide decals to lay flat?
Also, do folks typically apply a clear coat over the paint? Is it possible to sand and polish the clear coat since it too will be textured?
I'm sure others more experienced can help you, but I've had success using waterslides over the hammered paint. I paint, let it cure, apply the decal (using a little micro-sol in the water), let the decal dry for 24 hours, then apply the clear. I see no need to sand and polish but I would advise against sanding the textured paint. Polishing with a compound would be fine as long as you don't use a coarse compound or go overboard with it. I think it's plenty shiny without it though.
I'll post some build reports of my recent builds later today and drop a link here for you.
One more thing...be sure to spray a light coat of clear or two on the decal before you put it in the water or the ink will run.
Would love to see a photo of your pedal painted with hammered metal paint finish.