I'm not in any claiming that they should be typing on QWERTY. I'm wondering why the pathological case exists at all when it seems it doesn't have to, and if there's a reason for it that I'm not aware of. Maybe there's a market for machines like this to spit out English, maybe there isn't, but I'm not in the field so I really don't know.
Reading it in English isn't as ideal as you may think, though. I actually prefer reading the notes. The problem is that if you're writing at 225 words a minute, it can be very easy to accidentally leave off a letter, or add an extra letter to a stroke. The English might come up as come up as a completely different word, where as if you're reading what you've actually written, it can be a lot easier to see your mistake and read the correct word.
For example, let's use the word Dime again. If I'm going at 225 and I accidentally add an "R" to the word dime, it'll look like "DRAOEUPL". In English, this would read "Did there come a time", where as if I were looking at my notes, it would be obvious to me that I intended for that to be "dime". If you're reading back at court, you don't want to make mistakes like that.
It's good to know that it has at least been done. There are so many places where technology lies untapped, I was half-expecting this to be one of them since it's such an old field (and with close ties to the government).
This is a bad practice not only because it misrepresents the original thought (the person was not claiming that X was an improvement, they clearly called it pathological), but more perniciously it subtly erodes the (altogether sensible and honorable) habit of good people to give full disclosure of their ideas and methods. To put it simply: attacking someone on the weaknesses that they themselves have revealed about their own process or idea is neither fair nor useful, and does not contribute to the discussion.