I would offer two comments to the discussion:
1. If you eliminate the input stage to provide for a balanced drive into the phase inverter, and then employ a balanced push-pull NFB scheme in the 240, about the only way that could practically be done would be to used balanced NFB from the low impedance secondary load winding (grounding the 4Ω tap and then using the Com and 16Ω taps for NFB ala ARC style. I suppose it could also be done using the balanced 600Ω winding as well, but that may not be as effective since that is a primary winding. Either way, the inverter stage would have to be maintained as a balanced input gain stage not only as a point for reinserting the NFB, but also because significant gain will be lost eliminating the unbalanced input stage. A 12AT7 might be appropriate as a balanced input stage. It would basically be a major rework of the design but still, the approach could likely be pulled off, although I'm not sure to what gain.
I have used balanced push-pull NFB very effectively in my rework of both the Fisher SA-300, and the Heath W-5M, with full power 1 kHz THD down easily as low as the 240 at its full power output level, if not lower, so it can be a very effective performance enhancing tool. The beauty of it is that distortion is not just lowered by the feedback factor as is usually the case, but by the square of the feedback factor, due to the push-pull arrangement.
2. I have heard the poor 12AU7 linearity claims (bashing?) for years and the theoretically higher distortion levels that produces, and there is no doubt that curves for other tubes of similar application intent show them to be more linear devices. But in practice -- where it really counts -- I've never seen all the negative press the tube gets play out in any significant way, if at all. Changing out a 12AU7 tube for other tubes can often be done rather easily, and (sometimes) results in slightly lower measured distortion -- but if anything, that's due to the slight increase in OLG other tubes produce, rather than vast improvements other tubes display in linearity. My 2 cents worth anyway.........
Dave