It would be "interesting", to say the least, to hear someone "explain" why its "acceptable" or "intended" behavior.
Let's be honest, X1 was rushed to market.
"Hot fixes", "Patches" followed in rapid succession.
The Tech boys (and girls?) broke for the Xmas Holidays (2010) with X1 in total chaos.
Somehow we ALL missed it, the "punch" issues I mean.
Evidently most just "Loop" a section and record multiple passes until we get it right.
And you're right, looping has some other issues.
Sometimes my VSTi's just "fall apart" when looping; its random (maybe I had a "Punch" set?)
T