I've been riding those same Dunlops for over 6 years as well as many other people I know and have never heard of an issue like this. I think you just got unlucky and got a bad tire or the installer messed up when mounting it and blamed it on Dunlop. Should have taken a picture of the out of round condition, I'm having a hard time picturing this.
Sample size of one doesn't make a good data set. I can think of so many products that I've had a single bad experience with but plenty of other good experiences with the same brand! Hell, just last week or so I found this huge nugget of pure flavor powder in my doritos. What did I do? Admitted it, took a picture and ate the rest of the bag.
Cars, bikes, guns, phones, tools.... Don't let one failure turn you off a whole brand.
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After reading this I'm thinking you got a bad tire. Had a brother that had the same issue with the Michelin commander and they replaced it and no problems since. I'm running the American elite and have had good luck so far. My big thing is finding a tire I can get some mileage out of. Living in Nevada there is a lot of straight freeway riding and it takes it's toll on the center of the tire. Last couple rears had lot's left on the sidewalls.
Well if you find a rear tire that lasts let me know. My rear tire no matter the brand on a touring bike is always shot at 8000 miles.