OMG ! The pictures sure do clarify. I initially agree with Harry in KY. I am astounded that it was installed that way ! I'd almost call it a nice looking job of a stupid installation. I can see that the 3rd function valve is an electrically controlled one so they could locate it darn near anywhere but ... Holy Cow! You might start by gingerly inquiring whether the dealer had advice to install the valve there by AGCO or where the idea came from.
On further study, the one (only?) nice thing about it is that 3rd function gadgets usually have an awkward side issue in that the hydraulic hoses from the quick disconnects (mounted on the loader frame cross bar) flap around , can even get crushed if not restrained, and yet have to have play in them to allow full motion of the bucket/grapple. I deal with that on an older 2011 MF2660 and DL250 loader using bungy cords to provide relief to those flapping hoses which is admittedly crude but I think many people do that. As your pictures show the hoses are well secured and all the "bucket rotation" curl/dump is absorbed hose-wise in the U-shaped loop sections of hose between the valve and the bracket for the quick disconnects for the hoses now seen on the round torsion tube connector between left and right parts of the skid-steer compatibility adapter. They are even routed through a welded red-painted welded hoop on the torsion tube.
Wow, this plot is thickening fast. That valve has 6 hoses directly connected to it. You MAY have one of the latest things out which involves extra valving to split flow and allow 2 things to be done at once from an open center hydraulic system. [Normally open center hydraulics are "one track mind" hydraulics where only ONE thing can be driven at a time by fluid under pressure dictated by the operator. For example raising the loader frame while also curling the bucket.] Typically gravity is used as much as possible to fool the user into thinking he is doing two things at once with the joy stick but one of the two is driven by gravity, not fluid pressure. MF new literature implies they have added flow splitters somewhere to address that issue.
I must say I have to put on hold criticism of the installation after seeing those pictures. The welded hoops for controlling hose positions make me think this is factory OEM configuration rather than lone ranger dealer mistakes. I still say [as you expressed really well in the initial post ..."Who in their right mind..." ] that the 3rd function valve is terribly exposed to all sorts of thorn bushes, tree limbs, posts you run over, errant debris, etc. Note also that with this 'modern' loader they have gone to great pains to run simple hoses inside the loader frame (!) and then they do something like this. By the way I think the loader being an "inside the frame hose route" type loader is closely related to this higher risk valve installation. MF is probably avoiding running hoses on the outside of the frame at almost all costs. Wow all over again.
I am wondering now if the best solution is a sheet metal protection shroud over the valve ? Reminds me of 4WD trucks using a shroud over their transfer case so they can label the thing "off-road." If so , Massey should be providing it, not customers buying tractors.
You really should get input from others who own and have first hand familiarity with joystick-mounted 3rd function controls for grapples -- which I do not have. And probably from the MF regional service rep who is ALWAYS a good person to know. It does not need to be an adversarial relationship bringing the regional service rep into discussions even if the dealer feels that way.