You findings match the analysis in the threads I've reviewed in the Geocaching forums. I also had a pretty rough discussion in one of the threads where others, not in the know, claim it must be a HUGE issue because GC hasn't done anything to fix it. They claim it requires updating all data, etc. I completely disagree based on way too many years of implementing technology solutions and I expect there are multiple ways to address the situation.
Instead of addressing a real issue like this, they focus on changing the icons. Go figure.
I would do the same as Nic or if it was a real issue for users, make it an option they could enable with a HUGE disclaimer on the potential problem that would occur if GC ever does it properly.