The problem with most homemade products is the quality of steel used in the manufactured product is not generally available to the average guy wanting to make his own.
Cold rolled is ok, but I'll bet the factory port-a-wrap is made with better stuff. They also have a really neat nickle finish available as an option that doesn't rust and has a rough texture for better grip.
Cold rolled steel is often spec'd as 1018 (85,000 psi). Other varieties that are stronger are 1045 (110,000 psi) and 4140.
The 4140 is a high strength, heat treated metal; it's practically spring steel. I don't know the strength, but this is what I would use if I were making a port-o-wrap of my own.
The loop on my port-a-wrap is 3/4" rod, and I firmly believe that it is solid.
The main bar/pipe forming the wrap-drum should DEFINITELY be hollow, but not thin-walled. Lowering heavy weight with a rope generates a lot of heat, and you need the air flow for better heat dissipation. It helps keep the tool light enough to use, also.