I like Dave's setup because it is not relying on a shared cooling system to cool the shaft seals. With our systems we rely on the salt water that passes through a lot of stuff. Sand, mud, a shell or more likely a zinc (anode) could easily plug up that small hose that cools the conventional dripless shafts.
Mark,
If the seal burnt up, you obviously lost water flow, any similar system would fail the same without water to cool it. If it was just a leak, having a wobble caused by bad cutless bearings would also have the same effect on any seal.
As mentioned, when I had a leak on my 2004 34c, I googled the crap out of this, when the day was done and talking to others that had this setup, I did not replace with another brand, just changed the seals which was very cheap and easy to do. If I saw what Dave posted, I might have went in that direction for a replacement.