WOW, that was fast Brian!
1. I know, the image scale is really small. I will bin it and try again; I was following advice to use the smallest image scale possible in order to detect SDE, but no one actually suggested a target scale. Maybe "as small as possible" was meant for refractor owners, not almost 8 feet of focal length from my SCT.
2. I wonder if this was the result of the image scale. Every other time I have calibrated PHD2 with this mount and OTA combination, it came out almost orthagonal -- never perfect, but within a few degrees by eyeballing the chart. I did have a very good polar alignment (< 20"). PHD2 does say that I have a large DEC backlash (1.4 seconds after I tightened gear mesh), however I can't reproduce this with the hand controller (at speed 1x it feels like .5 seconds to me). I spent a lot of time re-centering my collimation star and backlash would have stood out like kitchen fire. Lastly, iOptron claims the PE in RA is < .15 arcsec, and I haven't had any issues in this axis. I'll try again with binning to see if it helps.
3. This one is a long story, but I am still digesting guidance you gave to other EC2 owners here. In short, it seems this mount with its relative encoders really doesn't like short exposure times. For guiding, I actually plan 5 seconds with 5 seconds of time lapse, but as I'm still "testing" the mount I don't know what I'll settle on. I also need to spend more time choosing algorithms, because I initially chose LowPass2 since I have encoders on both axes, but they are not absolute and probably not super-high-resolution. Someone recommended going back to ResistSwitch, but I'm still curious about LowPass2 and ZFilter for this particular mount.
I will try again on Friday night when this week of clouds will hopefully end. Saturday I need to send the mount back if I can't work this out.