Okay, so maybe I get it now also. But first, a minor correction to the above statement so that readers are not 100% confused. The first example showed a product with multiple attributes (option names) each listed individually, but is still a multi-attribute product. This aspect of identifying a product was only recently realized but was a "feature" that seemed like potteryhouse/jeking intended. As a result of this recent discovery, there are some aspects of the code that need rework to accomodate appropriately.

Now the part that I get:
All product identified with 0 quantity, where multiple attributes are added as a combination with the expectation that out-of-stock is turned off are still showing one such combination with the condition of displaying the undesired out-of-stock aspect.

I do think I remember seeing the logic to possibly cause that response and at the time I didn't see the need to address it. How short sited I was... Will add this to the list of "fixes".