Minimizing Turing machine-like automaton with no final states
What exactly is the difference between your machine and a TM? (apart from not having accepting states, which is quite meaningless since you have an output)

It sounds like this is a very powerful model, and its halting problem will be undecidable, let alone minimization.

EDIT: Minimizing TMs is undecidable (actually, not in $RE\cup coRE$). It is easy to reduce the universality problem to it: given a TM, if you could minimize it, then the minimal TM will consist of a single, accepting state iff its language is $\Sigma^*$.