I have what I guess is the standard model, with the large hammered rivets. I've had it for about 12 years now and never had a problem like that. I like the way the larger copper rivets look, though I'm not sure I would pay an extra $70 either. I think mine was somewhere around $100 when I bought it in 2000.

Edit: I re-read your post and see you are worried about the smaller rivets on the classic. I can't see that being an issue either. The rivets don't have any sharp edges for your shorts to batch on.

The reason the classic is so much less is that it has less manual labor in it. The small metal rivets are machine riveted in, and the saddle is more plainly styled. The higher end model has larger hand-hammered copper rivets and the lower edge of the saddle is trimmed (I think it's called "skived"?) Both versions are equally functional and the only difference is some extra styling touches.