I just noticed this thread too.... kinda scary.
I've had -multiple- electrical shorts on the SV, to include the ignition one you speak of. Mine never cut out while riding (thank the biker gawds), but there have been several times I'd turn it off to get gas or go into a store, just to come back out and have a dead bike. I little wire giggling and it would come back to life, so I knew it was a wire short. It happens with my headlights here and there.
The problem is in the connectors, and the shakey nature of a V-twin. The little individual bullet/pin connectors in the plastic plugs can be sort of loose, and the constant rattling will cause them to arc (it is usually a hot wire, in my ignigion harness it was the hot lead to the switch... generally big voltage lines do it most often), which will slowly wear away the contacts and generate heat. The arcs get bigger, hotter, and more frequent, and eventually the plug itself starts to melt, accelerating the process further.
I've currently replaced two connections (one in my headlight harness, and one in the ignition... but not the entire plug mind you, just the one wire) because of this, and I'm about to do one more in the headlight/indicator harness. I'll trace down the offending wire and/or connection, and pull it out of the connector. I'll cut the old tips off and crimp/soldier a tougher individual bullet connector in place, as well as crimp down all the other connections in the harness a little bit.... just to make sure they don't get loose as well. I would simply recommend adding the checking/tightening of your electrical connections to your schedualed maintenece routine, at least one of your 5,000 mile services. If you see a warped or dis-colored connector, you need to fix it quickly (or have it fixed). If anyone wants to see some pictures, I'd be happy to take some for ya'll... just ask.
Cheers :beer: