Myself, as well as others here, have had good, reliable operation with the 2 stage blower. I have sheared quite a few pins, but it is always a rock or hunk of wood that is the cause - so the shear pin is doing its job.
I too had a Simplicity (7119) with the single stage snowblower before the Kubota. It worked well on my mostly gravel (at that time) 1/2 mi driveway. I too never sheared a pin on it, but I went through 1 to 2 belts a season at $ 50 a wack. When the blade would jam, if I didn't get the PTO clutch fast enough, the belt would be seriously wounded in seconds, if it didn't burn through and break right away.
With the direct shaft drive, a lock up would be a mechanical disaster w/o the shear pins. The clearances, etc that are mentioned and I feel not an issue. Tighter clearances just means that smaller rocks can jam the drive, but there will always be a rock that is big enough to jam up the works. The Simplicity single stage ahd hugh clearances, but I still jamed it often with a rock or stick.
Since the Simplicity days, I have paved the driveway. I still get gravel stones that are carried in by the cars, and larger rocks pushed up in winter at the edges, as well as the ever present tree branches that jam up the blower, on the average of once per outing. I always carry a few pins and wrenches with me so that I can replace them without returning to "home base".
I truly believe that you have a "lemon" unit, not a result of the basic design, or a function of the 2 stage concept. There is most likely a clearance or interference in a shaft or bearing somewhere due to a bad tolerance. With enough digging someone would find it, but the replacement is most likely the best solution. Pressure the rep to make it no charge due to your hassle and loss of use. Just hang in there, Kubota is an overall great, reliable product.
paul