A couple questions for you...
You seem to be controlling your mash temp by measuring the HLT temp with your controller. Is that right? Do you find that setting that temp to your desired mash temp actually gives you the ultimate mash temp you want or do you need to go +1 or so?
Using a cooler based mashtun is usually enough to hold temp so what is your motivation for HERMS? It seems that running the pump, stirrer and element during the entire mash is fixing a problem that doesn't exist. Is suppose if you triggered the pump off a mash-based controller and probe, it would only kick on when necessary (probably once during the entire mash).
When you're done mashing and ready to start sparging, do you ramp up your HLT temp via the controller to 168 and continue the HERMS recirc to mash out? I would imagine this is where a slightly stronger element would help because it probably doesn't do 1F rise per minute when heating the sparge water and mash itself from 150-168.
What is that flex MLT return doohicky and where did you get it? I've seen that kind of thing on machining tools for coolant delivery but don't know what to search for to find it.
The differential between the HLT and the MLT temp on my first brew last week was 2-3F... that was it. There is a fair ammount of hose, the pump etc... 2-3F seemed to work really well over the course of the mash.
Using these coolers over the past several years I have lost from 3-5F over the course of an hour mash, along with hot and cold spots. This was not good enough for me. Also, if my strike water was a little off, there was no easy way of adjusting my mash temp. Also, there was really no mashout because the ammount of boiling water that I needed to add to my already cold mash was too large for the cooler in alot of cases. I also did not have clear wort. There was a problem as far as I was concerned with the straight cooler MLT. I see no real issue in recirculating the mash water during the entire mash, other than the $.05 that it costs me to do so. Adding another switch to control the March pump would just add more complexity when it is simply not needed IMHO. By constantly recirculating my mash water through the HERMS coil I maintain a precise temp, within 1F as measured during my last session, during the entire mash, and the water is constantly being filtered through the grain, so I do not get hot and cold spots.
I ramp up the HLT water to 173F when I mash out, I get about 1F/min rise in my MLT while doing so. Without any recirc. my HLT water will rise at 2F/min. So I simply ramp up my temp in my MLT to 173F, let it recirculate for 20 mins and then swap a hose and start my sparge.
The doohicky in the MLT I saw on another brew rig, it is a coolant hose from McMaster Carr... it works really well and holds whatever shape you bend it too, even with 175F water flowing through it.
Basically I wanted something that would allow me to efficiently hold a precise temp, make small temp adjustments when necessary, clear my wort and save propane. To make an electric HLT it seemed only logical to go ahead and drop a coil in there and build a HERMS since I already had the pump.