hidalgoe --
I'm gathering from your post that those suggesting the breaker and a half scheme are primarily interested in improving the reliability of your 69 kV supply, with the secondary interest of improving the transformer protection scheme. I don't know your station layout though, so that may be an incorrect assessment.
In my opinion, a breaker and a half scheme is overkill for a distribution station. I don't believe that it adds that much extra reliability to the station to make it worth the extra money.
At minimum for a two-transformer station, make sure you have one 69 kV breaker (between your transformers). This will allow 69 kV line faults to be cleared and only clear the feed to one transformer.
A better layout would be to have breakers on each of the 69 kV lines coming into your station with a 69 kV breaker separating your transformers. This will allow 69 kV line faults to be cleared without clearing the feed to both transformers. It also clears bus faults while only clearing the feed to one transformer. (This would probably be my choice to balance cost vs. reliability.) If you want to provide even more flexibility, a four position ring-bus is probably the way to go.
As for the transformer, high-side fusing is a pretty common practice on distribution transformers (with a low voltage main breaker). Yes, differential relaying with overcurrent backup would be better, but that's a judgement call on your part. Given that your transformers are of significant size, I'd personally want more than just high-side fusing (would probably go with a 69 kV circuit switcher, with the relaying you've described -- differential with overcurrent backup).
Hope this helps. Anyone else have comments?