No, for that configuration the voltage across the diodes is only the volage drop across the opto input LED.Won't the input side of the rectifier portion of the circuit still have the full peak to peak voltage coming into it? ...+650V
It would only see the high output voltage if there was no load on the bridge output.
Most of the voltage is dropped across the resistors (as shown in ron's diagram above).
Correct, so each resistor dissipates about 1/4W maximum.If I remember my basic electronics from college correctly the current though the two 250k resistors in series should be around 1mA? ...which is roughly 1/2watt...
It may still still work, but it likely doesn't leave much margin to where it won't work at 24Vac.Would increasing the input resistance from the mains to say two 1M resistors only have the effect of increasing the time that the 24v signal takes to move up to the full output?
Depends upon if the opto and the output transistor have enough gain to give 5V output with a much lower input current.
Sim below:

Just order the resistors when you order the opto.
I used two resistors to limit any accidental short current from either main's connection, and to reduce the voltage drop across each resistor (resistors do have a voltage limit based on their physical size, independent of their power limit).why one needs to use two resistors in series rather than just a single resistor