It sounds like he may have been thinking of the atx and not mtx. His explanation about atx wear is closer than you would think.
With the CD4E, there are particles that accumulate from the friction clutches and friction plate - as well as from moving gears, etc. These particles are hopefully caught by the non replaceable filter (unless you remove the atx) and a magnetic strip that is attached to the chain guard behind the front cover. As the atx wears, this magnetic strip becomes saturated and loses its effectiveness which allows particles to bypass it. Particles caught in the valve body contribute to pre-mature valve body wear combined with Ford using cheap parts and loose tolerances leads to atx failure. With a non-serviceable filter, change your fluid often to say the least!!!!
Regards,
Bob