I honestly think it's great of you to try and save people from what could be a terrible decision, as many people have had their lives ruined in the past with bad hair transplants. However, all of the concerns you mention mirror how I felt about this on first hearing about it. When you say they look ridiculous, I can't really comment as that's subjective. I simply disagree. I do think the really defined hairlines are bad decisions as people who opt for this look with full heads of hair look like they've drawn on their hair too, so it's just drawing attention to it. The softer looks look brilliant though.
This link (I know the pictures aren't too clear/ big-
http://forum.hishairclinic.com/topic/one-month-post-third-treatment) shows one of my favourite results. I'm going to go for something like this. It would require very little actual MHT as I still luckily have most of my hair. As I want a softer hairline anyway, a decrease in texture would make sense.
HIS, as the inventors of MHT, performed the very first procedure (on the owner of the company) and therefore know what happens as long as ten years down the line. No fading was noticed, and the pigments certainly did not change colour/ spread out. The inks are not traditional tattoo inks and are placed in an entirely different layer of tissue (much closer to the surface,) so the same problems aren't faced. Even if this treatment stayed good for 10 years, I'd be happy, as my looks are probably most important now and up until then. The company have no reason to believe the pigments would ever change though, except potential fading.
I've read many forum posts dispelling the 'touching' concerns. One guy who was previously completely bald is a keen football (soccer for Americans) player and noticed how much people rub his head when celebrating goals. Nobody notices. The feel of very closely cropped hair is partially bare skin anyway, so it's not a massive difference. When I bic my hair, it just feels a little sticky, not rough. On top of this all, nobody ever touches my head, I'm not at all a physical guy.
I don't know what 'devious marketing schemes' you are talking about, but I really don't see it. They advertise their product like any company would, but they seem very honest to me. A member of staff actively participates in the forums and seems like a great guy. There are no obligations, they offer a guarantee that they will work on your treatment within the original quote until the look you decided on has been reached, and will refuse treatment on people even when they're in the chair if they don't seem 100%.
One thing I do kind of agree with you on is the price. It definitely does not cost them anywhere near to what they charge. However, for the actual purpose of MHT, the price is very reasonable; it can give people their confidence back and virtually lasts forever. If it was much cheaper, I imagine many desperate guys would just get it done without even questioning it/ considering their options.
As for the links you posted, these are done by people who actively target those desperate hair loss sufferers and use both regular tattoo ink/ needles and also permanent makeup. HIS' formula is patented and specifically designed for the purpose of MHT. HIS see many people who have been victims of this false procedure and work with them in getting the original failed pigments removed via laser removal and offering their own treatment. This guy is in the process of this:
http://forum.hishairclinic.com/topic/Raphael