I think he was referring to the cumulative -1 damage modifier for attacks a character makes beyond the first in a turn. Despite that, I still think your answer is correct. Outsiders is a tactical TA which is both expensive and uncopyable, I see no reason to limit its effectiveness on this one particular modifier.

I never doubt you have heard of things. But considering how odd of a thing the watch list was, I wasn't sure who was in charge of handling it (rules team, game design, playtesters, the "head" employees who make the big decisions, the marvel/dc reps, some unrelated hired professional brought in for this one thing, etc). And also, hey, we all forget things. I'll admit, prior to the Batman set, I never saw Outsiders played (and I never ran them at my venue, not being a fan of the comics), so I often forget this TA exists. I often forget Street Fighter Team Ability exists (because I forget those clix were ever made). When you stop and think about how many standard powers and combat abilities there are, there are already so many, I don't honestly expect someone to have all of those memorized off hand as well as all of the team abilities (quick test: name ST away team without looking it up!). There are just too many. 56 powers, 17 combat abilities (with 12 parts each in the "improved"s), and 67+ team symbols (I may have missed some new one in there), that's already over 130 facts to memorize on top of the base rules.

Yeah, its a lot of stuff, but its our job to check on that stuff to prevent unintended consequences. Sure, we will miss stuff here and there, but in general I'd assume something is intentional rather than an oversight unless it is glaringly wrong.

P.S. I saw your doppleganger today. In a barbarian outfit no less.