One for appraisal.

[plloyd1010]

....and taking it a step further, The friendly unit could be ANY NUMBER of hexes away from the "edge" of the hill mass and still see. yes?

I am not sure I understand the question, but feels like a no.

Then there is relatively NO slope that blocks..... that makes the problems MUCH more "interesting", yes?

There are a few. The rules says LOS is blocked if the lower unit is closer to the elevation line than the higher unit. So, if unit A is 1 hex from the elevation line and lower, and unit B is at higher elevation and 2 hexes away, the units cannot see each other. In your first example that would be like having units in hexes 0908 and 1206.