MonsterMan,
IMHO, you are absolutely right. Just look at Jay's picture on page 1 one more time. It shows exactly what you are saying:
Position 1 shows the flex of both legs during transition with both legs are equally flexed.
Position 2 shows the flex of both legs right before transition when the old outside leg is at its longest and the inside leg the most flexed.
If you compare position 1 with position 2 it is obvious that the old inside leg right before transition (position 1) is flexed more than it is at transition (position 2).
I think the key is, that when we say "flex to release" it is really the old outside leg that we want to flex; the old inside ski actually does the opposite in the process, i.e extends. As Jay said, it is simple geometry. I think as long as your mental focus is to flex the old outside leg, all is good...
IMHO, Jay's picture confirms exactly what TDK was seeing in Harald's montage. The old inside leg "extends" from its most flexed position right before transition to a less flexed position in transition. It has to extend somewhere, otherwise how could it become the long leg later in the turn. In reality, it is a continuum, a gradual change in leg flex, going from fully flexed at the end of the old turn to fully extended at the end of the new turn.
Just to be clear, I am not advocating to "extend" anything consciously. The focus in my mind should be "flex the old outside to release..." right before transition and "flex and tip the inside" after transition. Everything else is just overanalysis...
Hope this helps.