The issue I see with splicing several cords together is a biggie, that the cords will no longer be U.L. listed. In the event of a fire, if the layout wiring is determined to be at fault, your insurance may not pay.
After considering my options, I chose the Dept. 56 low voltage lighting system, cat. no. 56.53500. You may be looking for an economical solution which I admit this isn't (but please read my whole post), but it eliminates the risks of using modified 120-volt light cords. The kit comes with a power supply, a low-voltage distribution strip, and nine light cords in three lengths, with bulbs. The wiring is thin and the small plugs pass through a small hole in your layout. Currently the set retails for $95, but they can be had on the 'bay for less if you're willing to shop around. Some sellers offer gently used ones for about half that. Lemax has a large enough market share that it may offer a similar system; I haven't checked.
The only downside I can see with the Dept. 56 system is that the 3-volt bulbs aren't as bright as C7 night light bulbs. I will admit, since I already wrote about this in another thread, that I got around that by doing away with the original power supply and using spade lugs to connect the distribution strip to the 5-volt terminals of my vintage 1033 transformer. Yes, this way the bulbs will operate at more than 3 volts, but I have a hunch that as designed they're operating under their rated voltage, because I have yet to have one burn out. If you're handy with soldering, you could make your own distribution strip because the light cords and bulb are available as separate-purchase items for $15 for a set of three. Or you could simply splice the low-voltage cords, and do away with the distribution strip. I used the strip because I already had it. The Dept. 56 part number for one of the separate light cord sets is 56.53598; there may be others.
I hope this helps.