Here's a picture of my FE when it was still being made. I wanted to make mine a bit differently then those I've seen online.
This is adorable! Very cute design!
You should be fine with the 8" width. Ours is about 10" and fit fine. I used about 2 feet of ribbon to hang ours from the fish. As for the dowel rod, I would think a 1/2" one would be plenty sturdy.
My only thought....I can't tell from the photo if your gift pockets expand. We've both received and given gifts that were 3" - 4" thick. We've also received several hand painted 8x8" photo frames, for example, that I'm not sure would fit in your pockets (again, not sure how wide or deep the pockets are.) If gifts don't fit, you'll find them probably on the floor by your cabin door.
Have a great time with the FE!