You would lose a TON of flow with 1/2" or even 3/4" plumbing. There is no point in using a pump like a Mag12 if you are going to kill 1/2 of the flow anyway with undersized plumbing.
Not all pumps work this way. Pressure rated pumps such as most external pumps don't need the huge plumbing to get good flow. I like Mag pumps for the most part, but this aspect of them, I do not. Working with 1.5" plumbing is not fun.
As far as the number of outlets, its up to you. Maybe 4 or so?