I started this thread to see if my reading on the interaction was right. And four pages later, we're still going around in circles. No, I would not show up to a tournament with a squad that had an interaction that had any ambiguities in its interpretation. I like knowing the rules, whether I'm right or wrong about how I interpret them, I like knowing for sure so that when the situation does come up, I can have a leg to stand on with how FFG has ruled on them.
With this tournament season coming up, I expect to not face the same squad twice, and when I face a Kath with Ion squad, I would like to know for sure how the interaction plays out. I understand that I don't know everything, and I've been wrong about many things. I brought this topic up because I didn't see this interaction defined anywhere else, and we briefly talked about it on my regionals thread. So I wanted to be clear about how this interaction works, and I fully admitted in the original post that I could be wrong, and I may be. I don't think I am, because I don't think the "canceling dice that have been previously removed from the common area" argument holds water, but I could be wrong.
Anyway, gotta get ready for work. Thanks for all of your responses and your civility. Again, I'll post when I hear back from FFG, although I have no idea when that will be.