Re:
If I'm understanding this issue with the seat tube transfers correctly, it strikes me that cutting the down tube transfer into individual letters, stacking them vertically, and changing them from white to yellow, might resolve it ? I'm not suggesting that as an economically rational course of action for frame refinishers, but it might be a good starting point for anyone seeking to rectify the transfer in question, or understand what might be wrong with the existing one?
I might be dead wrong. (I refer you to my second post on p.16.) Worth a try anyway. Someone with better computer chops than me could probably do it in five minutes and post it on this thread.