Looking at a Daiwa Tatula SV TW for 1/4oz and maybe 5/16oz Texas rigs, flukes, and senkos. If I remember correctly the sv tw supposedly works best for lighter weight baits. How would this reel perform for these instances?? Only reason I am considering it is because I already have a tatula elite and love it.

It’ll do just fine for those techniques.  I have 2 Tat SVs that I use for those same techniques.

Just because the SV spool works well with lighter lures doesn't mean it has a problem with what is considered normal weight lures.  Use and enjoy it.   Personally I throw a lot of 3/8-1/2 oz. lures on mine.

I have several SV Tatulas and use them from finesse baits to baits over an ounce. They work fine for all of it.

Great for everything, I use them for finesse fishing  to frogging.