Oh boy! Did I forget to mention that the crank-bearings on the 29er are garbage too? I had the same issue on both of mine. All I can recommend is that you buy new balls and some good bearing-grease...clean out the cups as best you can, and install the new hardware. I realize you're already invested, but I would highly recommend a new GS29 instead. If you have the means, they're "only" $150, and are better built than the 29er. I think you'll save yourself some headaches.
I agree that these are pretty cool, but from a safety-standpoint, I stongly advise keeping seperate levers. If that single lever ever fails at speed, you're up the creek (without a lever!). Also, I repeat: take a close look at my configuration on my left handlebar; the brake and clutch levers fit just fine. In fact, this configuration works perfectly...you can clutch-in and brake at the same time. You'll only need a light touch on the front brakes anyway.
I actually DID see this ad, and was in a Walmart recently hoping to see an actual example. I'm pretty sure that you'd have issues fitting an engine. That bend at the top of the down-tube would translate into a reduction of valuable motor-space.
Certainly possible, but that would make actually starting the engine by dropping the clutch IMpossible.
