In my mind, the button isn't a backup to the rotary dial, because the rotary dial won't function without the button, so the button seems to me to be the ultimate point of failure on both lights…
Why where you living in Japan at that time?
The switches are the same in both lights. Very low point of failure in those. The Rotary has a track pad and then a contact board (I'm sure folks have seen the photos of those with the little fingers). The fingers have changed 3 times over the years, and are about to get changed again... along with the contact board.
You are correct, B is the Rotary function, but that can be programmed to be anything by the end user.
In a head to head, any catastrophic failure, is in the head... not the tail. The Rotary function acting wonky or not working isn't a catastrophic failure as the light still give you... well, light and as has been said before, you now have a clicky with all the customization a clicky has. It is annoying, and shouldn't happen when a Rotary function acts wonky. It is pretty rare but it does happen. We have actually been working on new Rotary internals... this will essentially eliminate the possibility of wonky behavior (and the tactile response of the fingers going over the contact pads, which folks describe as "gritty feeling").
There are 3 advantages to the Clicky.
1. User replaceable rubber switch button.
2. Grit can't get under the start of the switch cap. I don't mean into the switch cap, but on the Rotary there is a little section grit could get under before it reaches one of the two O-rings keeping it out. This would give it a gritty feel until washed out, but wouldn't effect performance as it can't get into the workings of the tail.
3. When used under water, if one Rotates the Rotary dial, there is more likelihood of water getting in there as they are static seals... probably not a huge deal, but still, there it is.
As far as catastrophic failure goes between the two, they are pretty equal with the Executive just barely coming in front of the Rotary. The new light will change that. A lot of design changes coming. While it will still look like an HDS, it will be 2mm bigger in diameter and won't be interchangeable with older/current lights (this is necessary to accommodate 18350 batteries without driving Henry to drink... I've already been driven there, so it doesn't matter for me.). We are not planning on an executive model, though the current Executive will be offered for some time to come.
I went to Japan to teach... I didn't get any excitement in the USMC so... got more excitement than I bargained for in Japan. Lived there for a decade. Wonderful place, great people, interesting culture... my eldest is currently in college in Kyoto.