I must say that this is a very interesting thread (hydraulics are my "thang") - and I sure like the idea of better oil cleanliness for the XS650, but some of the solutions seem pretty fragile to me (the filter on the bottom sump plate of the engine for one). It is a clever design, very convenient for servicing and I'm sure that it works fine - unless you whack a chunk of rock on the road, or a piece of wood, or a pothole, or a curb....and then all of your oil will disappear within a few seconds. To each his/her own.
One good thing in our favour is that with very few exceptions, just about everything that rotates inside the XS650 engine is rolling on ball or roller bearings and these devices are tremendously tolerant of oil problems. They aren't immune to failure from dirty oil or no oil, but they are extremely tough and given the oil "filtration" scheme that MamaYama designed into these engines, that is a goooood thing.
I'll close by pointing out that the other key function of engine oil is to carry away heat and that is not nearly as much a function of oil cleanliness as the lubrication of closely fitted journal bearings (as found in most multicylinder Hondas for example). I certainly do not condone running any engine out of oil, but the biggest danger in allowing the oil level in an XS650 to drop too low is that the engine will not have an important means of rejecting heat. That is why I got one of dogbunnys thermometer dipsticks for each of my 650s.
Anyhow - keep on checking that oil folks - it is important for several reasons!
Pete