First of all, I applaud you for the time you are investing in this.
While it would never be something I would use now or in the past there are people out there looking to simplify the dwarf hobby.
Forgive me for being a while to reply as my age factor means for me I have problems now, not being able to stay on a topic a long time to read your links all at once, and, it is very tiring as I have to close one eye to be able to read/post. It's a big reason I no longer do a lot of investigation over the last couple of years now.
In that fisheries technical paper I linked to there is information about the mainly vibrio bacteria and fungai found on the cysts and at the time the recommended procedure was to decap
Another problem is that all sources vary in the levels of pathogen introduction, bacterial and fungal. Tests conducted on cysts from one source can be quite different when you test cysts from another location. In terms of the GSL cysts, there was a publication some years ago showing a variance even in different part of the lake.
I also agree you can't rid ALL of the pathogens with any known procedure today, but again, the less you start with, the slower the possible problems introduced when feeding.
It's my belief that nauplii contamination by pathogens stems from the hatching water so it's important to lessen the chances by being sure the cysts are sterilized to the point it is very minimal if any vibrio strains or indeed any other pathogen survive.
For myself, I sterilize the cysts (decap is best IME) hatch in bleach or microwaved water, and then I use peroxide in the hatching water just before harvesting to again minimise possibilities. At least if this is all done before Instar II stage at least they cannot ingest any pathogens.
There is no point in my commenting on the hatching of the
expensive Sep-Art cysts in tank as I believe it should not be used but rather hatch externally, grow out to second Instar and then enrich properly. One 12 hour stage to gut load nauplii, and two 12 hour stages with new water and enrichment for the second stage which by then will have the enrichment assimilated into the flesh of the nauplii. I feed dwarfs 3 times a day and remove the uneaten nauplii with lowered nutrient profile before replacing with fresh enriched nauplii.
Anecdotally, I found that going from using newly hatched nauplii for dwarfs, to later on switching to enriched nauplii meant the longevity of the dwarf was increased noticeably. (Dan Underwoods advice at the time)
Speaking about Dan Underwood, I wish I still had all the publications and links to publications that Dan had sent me over the years but unfortunately when you don't have a backup system other than a partition on "C", all is lost when the computer fried. While there are not many studies that are directly done with seahorses in mind, Dan seems to find them.
There are all too many publications by reputable sources done on many things that could affect seahorses, but because they have NOT specifically tested with seahorses in mind, they often don't really apply. For example, when dealing with the vibrio species and cysts/hatching of artemia, it is a fact that seahorses are far more susceptible to bacterial infections than other marine species.
I used artemia in all of my reef and fish only tanks for over 20 years without bacterial problems (other than cyano) but when I moved to start with seahorses, the problem was very evident.
Probably with respect to aquaculturing industry, the only thing that comes close is Penaeid shrimp culturing.
As to your aspirations for getting the system you designed to a point it minimises the efforts of dwarf keeping, you do have a lot of good ideas to pursue, but, I don't think you can EVER get it to the point where just anyone buying your setup and reading how to do it and able to succeed. IMO there will be degrees of success in spite of your attempts to simplify but that is because of human involvement more than design faults. (I still consider non enrichment a design fault)
All this being said, it may all be a moot thing if dwarf keeping is to be made illegal. There are not many breeders presently for dwarfs, and if the proposed regulations come to fruition, there will not be wild caught to start or refresh cultures for captive breeding. I know Dan Underwood is one of those no longer culturing dwarfs just because of pending regulations.
This link may provide some information on that, but I'm already too worn out to read it at this time but I'll post just in case it does provide something you can use.
http://www.iucnredlist.org/details/10089/0
I don't think either of us will convince the other of all our points of view but I'm certainly glad this all came up as I previously had no knowledge of the coating of cysts with magnetic material. I just can see the economics of it at this time though.
It would be interesting to know the process the cysts are put through. Would the process itself be a self sterilizing thing, or would it possibly just cover up possible pathogens.