I had called a local tranny shop here yesterday and the guy said we call it stuffing a yoke. RTV/CLOTH/RTV and he had no explination of why it does this. I'm OCD and although I'm only a shade tree machanic I like to do thing the right way and I didn't like that answer. I figure as you say, just because it works does not make it right. I need to understand what is wrong before I can fix it correctly. I'm just that way and I'm not knocking anyones info on the fix for this problem. I just put in a new modulator valve just for chits and grins a hour ago and the old one was most likely good for there was not fluid and all hoses are tight on each end and no leakes. I would also like to focus on the fact that when this happens, it's like an explosion of puke because that little hole should just drip, but leaving a 1 ft wide 4 ft long path as he gussed against the universal joint tells me there was alot of pressure built up. I'll keep reading and asking till I'm happy with the answer that gets me going toward a fix!
Just because "it works" doesn't mean it's the proper fix. I've seen PLENTY of things that worked that I would never even consider doing on one of my own vehicles.