I've heard recent claims that you no longer lose link juice when 301ing, but I've also had personal experience with taking a hit to organic traffic when doing this type of major URL restructuring. You're right, in the long run, it does pay off, but you're also right that there may be a ding in the short term.
While you're in there, I would highly, highly recommend taking the additional step of removing ",default,pg" from your URLs. There are two problems with that string - one is it contains commas, which can be problematic. Anything other than plain text and hyphens is generally discouraged in URLs. The other problem is that "default pg" part is watering down your URL and does not contribute to making the links short and easy to type and understand for humans. Since you are undertaking such a massive restructuring, now is the time to make these additional tweaks - as it's less painful to do All The Things at once and take one hit, than it would be to take a hit now and another hit later when you tackle that separately. I personally also always use only lowercase characters in my URLs as it's easier to type and depending on the server OS improper capitalization may make it so they don't reach the right page, but that is more of a UX preference than an SEO enhancement.
Another couple of tips: I find it extremely helpful to map everything out on a spreadsheet in this type of migration. Helps me make sure I have the old and the new mapped out, and also helps to have a checklist to go through systematically. I also tend to group related pages in batches, as presumably related pages will be linked to each other, and once Google comes crawling back over one page it will see the new URLs and crawl those too, faster than it would crawl unrelated pages. Finally, use a HTTP header check tool (google that and you'll find several) after you add the redirects just to make 100% certain you've set everything up correctly. And where possible, mass-redirect in a single .htaccess rule rather than one by one.