It seems to me that the 550 simply makes too much heat. Some failures seem to result from heat in the top end, perhaps some are related to heat down below and consequently oil/oil pump issues. The nicasil cylinder may better move heat from the top end, but what is accomplished if it just creates trouble down below. Using a gasket to isolate the pump from the heat seems like wrong-headed engineering. Solve the problem instead.
A leaking O-ring should not be an issue. That design has worked perfectly well on all the 340, 440, and 488 fans Polaris ever built.
Why did they go and make so many changes at once to their well-proven design? It seems to me that they could have simply upgraded the case design and improved a few things like their shrouds without also changing displacement, adding reeds, etc. (Wouldn't simply adding reeds to their proven engine sizes in an "improved" case been good enough?)
And what, if anything, has anyone done to modify or play around with the reeds? t would seem to me that softer or even slightly ventilated reeds might affect lower and mid-range operation in a possibly advantageous way in terms of reliability. Anyone here try anything that way.
FWIW, my trouble with the 550, personally, have been few. I have a 2001 SS with around 8500 miles and I've only been into it three times for rebuild. The last time the case was very hot to the touch. I run a low flash-point oil: Sea&Snow in it. I believe that are or have been makers of the similar product that Polaris sells as "Blue" semi-syn. (I kind of hate to say "only"; my 97 RMK Trail has over 24,000 miles and I have opened it once to change pistons and rings - at 13,000 miles. I decided only to do the rings as the pistons were in perfect shape yet, so it's had rings, gaskets, and seals...only.)