The seat switch is a double-edged sword as it is from a liability point of view. The manufacturer recognizes the need for versatility while using a PTO generator, pump, or logging winch. The real danger starts to show up when using other implements like a post hole digger, even a
chipper depending on the competency of the operator.
I've known of at least one person locally that's been killed after getting tangled in a rotating PTO shaft, and he's not the only one.
The post hole digger auger is every bit as dangerous as the PTO shaft, more so since they aren't/can't be shielded from contact.
Both my near neighbours have newer larger tractors (85 HP JD and 90 HP MF), neither have any kind of operator presence shutdown on the PTO. It's easy to get in the habit of getting off the seat and assuming the PTO is stopped after using my smaller Kubota.
Surprise! Everything is still turning because it didn't have to be disengaged before getting off the tractor. No seat flip, nothing..
I can sympathize with the OP, it's a PIA to have to use a log to hold the seat down. With an aftermarket supplier like Grammer I'm guessing that Kubota either didn't want to pay for full integration of the seat and their existing safety system, or Grammer simply wasn't interested in providing it.
Regarding bypassing the seat switch, it's always an option but is it worth the risk? A friend rolled their garden tractor a few years ago, it ended up on top of her for a little while before she got help. It shut down the engine as designed, since the PTO was engaged and she was out of the seat. Would she have been at greater risk of injury had it remained running? I'd have to say yes.