Hi Stephen, thanks for posting. I just took a brief read through "Safety Factors...", noticing the emphasis Nelson puts on the concept of development to an "average gradient", rather than a gamma value. And that this was, perhaps, key to accepting the film speed point based on a fixed density (relative to base+fog).
Changing topics...long time ago, when I was a kid, I used to wonder why Kodak made such a big deal about this idea they had, called "contrast index", as a replacement for gamma, or whatever. I happen to have a mid-1960s paper, titled "Contrast Index", where Nelson is one of the authors. In this paper, they refer to American Standard PH2.5-1960, the film speed standard, and the average gradient as per your excerpt from "Safety Factors...". It turns out that contrast index came about as a proposed improvement to the average gradient method of evaluating development, with broader application. Again, thanks for posting. Your 2-page excerpt has solved the mystery, for me, of why contrast index came about.