I think his theory was simply that you can time the research and gem income to coincide with a sleeping pretender, and thus sacrifice little to gain those 150 points. Plus, it's highly unlikely you could afford "a few" dwarven hammers, and the introductory SC gearset, by turn 12.
Is it worth letting the Cyclops sleep those first 12 turns? Even with the trinkets forgable at the start, he should be able to capture a good number of indy provinces right away. You will need some of those to start bringing in the gem and gold income you will need.
My understanding of pretender SC theory is that you want to get the early expansion advantage. If you have a clear advantage to have him sleep, so be it, but I do not see it indicated in this proposal.
If he is the type of pretender that would need some gear before he could be risked in combat (a low protection type), then it would make sense to let him sleep. But since he is a Cyclops, there would probably be more of an advantage for having him awake and capturing provinces unless the points were needed for some specific strategy.
Sure,with worse scales you can have an awake Cyclops. your capitol only mages get a chance for E3 so you can have dwarven hammers made. And if the cyclops gets an affliction you can heal it with a priestess.