bjb - I think 10.5.4 is only applicable to slabs and footings. But 14.3.5 is for walls - albeit not specifically for retaining walls. I've seen the exemption of 10.5.3 cited in design examples (and in design software) for retaining walls - I've just not seen any documentation why it was applicable over the 14.3.5 which leaves me a little nervous about the application. However, the exemption in 10.5.3, as I can pick out from the commentary, is to give some leeway on reinforcement where the concrete section is larger than it would need to be from a strength standpoint (e.g., an 8" thick wall section could handle the loads for a 10' high retaining wall, but the 10" wall is easier for most contractors to build and get the reinforcement/concrete placement right) - that would be the only justification I can figure out.
Dinosaur - there are requirements for development that necessarily extend the rebar beyond the point where they're needed, but it's relatively small (6" for #4) so if you truly exceed the 18" limitation, there is some economy in cutting of alternating bars.
Still, I would think the 18" max is there to ensure the reinforcement behaves properly in the system. Otherwise it might be that you have to look at the wall as a structural plain concrete design?
Thanks for your input.