scottf,
When you look at voltage drop on the primary being a function only of the conductor impedance, you are completely neglecting the mutual inductance caused by the presence of the secondary coil. If you insist on using a more complete model than what I've suggested, you might want to avoid going to the opposite extreme.
"The bottom line point is that I think you're using an ideal transformer alone to explain something incorrectly, which leads to the reader drawing a false and dangerous conclusion."
I really thought I had dealt with the incompleteness of the model in the last paragraph of the FAQ. Perhaps I should move it to the front for those who can't make it through a few short paragraphs? If you have suggestions, please use the comment button at the FAQ. Please understand that I have no desire to go into much more detail. I'll leave that to another FAQ writer.
By the way. I'm curious what happens when your open circuit voltage of 32kV is applied to 600V rated insulation?