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The specifications say 3% maximum audio distortion. With a little care the K3 will not distort to 3%. If the operator is allowed to produce issues by being given more flexibility, is this a poor design? This level of flexibility sounds like a good thing to me. Again good practice, as always, is the responsibility of the operator (FCC licensee!). It is not a poor design unless allowing the operator this precious flexibility is a mistake. This is the essence of the K3, and indeed Elecraft in general. It is also why I have a K3 and why I find the whole K3 experience appealing. The firmware upgrades are like a cool new surprise every time. I call it the progression ot the Amateur Radio "Art".
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