I am SUCH a dork!!!
I figured out what was happening.
The console Midi Channel Output names WERE indeed labelled incorrectly, all saying 1:Piano, 2:Piano, 3:Piano, etc., when my instance of Kontakt 5 had multiple instruments loaded, Piano, Rhodes, Strings, Organ, and Bass.
So I thought X2 was picking up these names from renamed Kontakt Output Section Audio Output Channel names, and using only the first one, which was Piano.
The REAL culprit was that I had originally only had a single instrument loaded into Kontakt 6, Piano, and had renamed the synth name in the Synth Rack to Piano.
Later, I decided to just use Kontakt 5 for multiple synths, and loaded them into Kontakt 5, and DID rename the Output Section's Audio Output Channel names to reflect the respective loaded synth, but I FORGOT to rename the synth name in the Synth Rack in X2 - it still said PIANO.
So, X2 was picking up the synth Name, as it was called in the Synth Rack, Piano, and THAT is why all of the Midi Output Channel names said 1:Piano, 2:Piano, etc.
DOH!
Sorry if I wasted anyone's time - both for my original ignorant post, and for my less ignorant but still present apology here in my 2nd post.
A VERY humbled Bob Bone