This is Todd, I am at Brian's house right now, but I will answer for the question. For a non diminishing abrasive to finish out perfectly, it has to be very small and fine in cut. It has to be as fine as any finishing polish (when that finishing polish is fully broken down). So when you use it with a wool pad to cut, you are relying on the cut of the pad vs. the cut of the polish to do the work.
Take UF or P085d for example, which both are ultra fine polishes, that break down ultra fine. I could use either of those with a wool pad to get a comparable level of cut as what system one would provide (system one would probably provide less cut because of the ultra fine non diminishing abrasives), then switch to a foam pad and finish out. There is nothing wrong with this, but I prefer to use my experience and the versatility of having different levels of cut to do the job faster.
I have used OP, 106ff, and UF to cut, compound, polish, and finish paints, so what is the difference. As long as the product breaks down fine enough, you can always rely on the pad and rpm for cut.
If you purpose is to cut, then use a cutting compound and a cutting pad and you will get faster results. If your purpose is to polish then use a polishing pad and product and so on and so on.
I was also at the seminar and some of the misinformation that was quoted was seriously terrible. First, the guy (don't know his name) drew this picture that made it look like diminishing abrasives where so huge that they remove half the clear coat in one pass. Then he said that Ferrari's have ceramic clears, and it just got worse. He was a body shop guy, not a detailer, and his delivery was as such. It was really a terrible seminar full of BS.
The worst (and dumbest thing) he said was that diminishing abrasives are not engineered. I know for a fact that Menzerna has spent more money in developing the sharpness, grit, and structure of their abrasives then this company has made. High end abrasives are engineered very specifically and it was utterly laughable when he made this comment.
All that system one is very fine abrasives (think broken down), with a sun friendly lubricant system, and a terrible marketer who is clearly going after the body shop industry by spewing a ton of misinformation. I would welcome a debate with him anytime, and there are some many people out there that know so much more then me and I would own him.
That said, who ever wrote that on the panel is a joke as well.