Island,
I agree with most of what you said; and see a slightly different possible reason for Kioti's head in the sand routine. What you described with the loader debacle, (well before my time here), reminds me of GM's approach to the gas tanks placed under the driver's side door on some GM pickups. In that case, until enough people were killed or injured and a class action suit came about it was denied, denied, denied, hoping it would just go away. The actuarial bean counters calculate a point at which it costs (theoretically more) to change something than roll the dice against suits brought, and the possible eventual payout or imposed changes/fines by legal action. Unfortunately, lives are lost as a direct result of those calculations to essentially keep as much profit in the shareholders pockets.
Kioti's squealing HST trannys on certain recent, and possibly ongoing sales and production of these tractors will not cost similar consequence in people's lives but make no mistake Kioti is probably hoping those of us squealing about our squealing tractors will go away or at least our warranties will and then we will have little recourse.
I for one plan to ring the Kioti corporate bell and see what they tell me now. I have a copy of their rudimentary drawing I copied at my dealer's store and am still amazed they would even send anything out that was so rudimentary, hoping people would bite, and then just disappear. I'm more inclined to side with my dealer's thinking of the flex tube solving nothing. BTW, he has said he's seen lots of other brands that have squealing transmissions over the years. This doesn't really give me any further comfort then prior to hearing him tell me that.
For the moment I'll just have to see what feedback I get from Kioti Korporate.