Based on neck-constriction for .257, and comparing it to a .260 AI with a 130, I don't see why you couldn't hit upwards of 3,100 FPS MV with a 26" barrel...Maybe even faster??? Just have to build it and find out. That's the magic of wildcatting. That's what makes it fun.
Yes, using standard .260 Rem brass would work fine, but to ensure proper brass length after forming (case necks shrink .020" during fire-forming to AI chamber), you might be best to use Lapua .308 Win palma (small primer) rifle brass. Buy a .277 neck bushing for the dies, neck the .308 brass to .277, then neck down to .257. And then from there, trim your brass .020" too long. Load your fire-forming loads (about 5 grains lower than book starting loads) with cheap Hornady Interlocks to where they are pushing into the lands & holding the cartridge head firmly on the bolt face (slight bolt resistance when you close the bolt). And finally, the fun part... Shoot to form. Out pops proper-length .25-260 AI brass.