"So Surly could spec those Phil Wood 40-spoke hubs but they'd have to pretty much double the price of the bike?"

Well Surly is in the hub business also, and while making 40 spoke hubs would probably bankrupt... someone, who knows what they could do if the sales were strong enough. But overall you are correct. The cool factor in the 40-48 hub comes from the fact that few people actually have them. 36 is probably enough, no mater how much weight, as long as you aren't creating a lot of jaring loads, which is certainly a possibility is some situations.

"It's worth keeping in mind that modern stainless steel spokes and more precise machining of parts means that the 36-spoke 700C wheel of today is stronger than the fabled 40-spoke wheels of yesteryear."

plus one there, from what I have been reading and riding.

"They were fairly common with tandems but now tandems are 145mm width...which would make a great touring wheel!"

That may be a weaker hub, since all it seems to have is a longer axle. I did think it would be fun though to build a solo with the 165, just to have the only one!

"But as I understand, Surly has lifted the glove for really good budget touring bike, and its definitely a good touring bike. So I guess the do understand in geometry but when it comes to parts, hehe, its a budget thing."

We had sorta that argument a while back when they initially anounced the complete bike. I said it would draw down the mystique of the frame and the quality impresion of the whole deal. And whether that happens or not it's certainly an argument. The reality is that you can relatively cheaply build an absolutely no holds bared top of the line touring frame tig welded. Surly isn't the only one doing it, another example would be Bike Friday, on a someowhat more custom basis. Basically there isn't any downside. Welded is good; Simple tubing is top of the line in this particular segment; and powdercoat is practical and durable, though you can certainly throw as much dough at the colour/graphics of a tourer as you want. But in my mind the LHT was never the kind of frame (fit and features assumed to fit the individual well) that needed to feel overdressed in Phil hubs or Paul brakes. Except they came along and lowballed the whole thing with their K-mart version, and as you point out, some component choices that don't make sense. Sure it is a contradiction that the 26" incher is sorta a co-motion tandem grade unit and the bigger models are more towards the lighter end of the spectrum. They never had to wear that egg when they were just selling the frames.