The dc is biasing transformers and causes saturation. The second is also causing unequal half-cycles. Very small differences, but for some very precise operations it may upset counters. In your e-mails you have indicated how detrimental certain harmonics. It works well but the inductors and the associate hardware is expansive.
Many utilities relocate the caps, add more or take off to avoid the resonance.
They always try hard to keep the consumer happy. Can I rephrase the question. When I used the term naked capacitors I means capacitors with no series inductance. Capacitors are needed for the 60 Hz welfare of the system. The elimination of the capacitors is a bit tantamount to back to 1895, the years of Steinmetz, Kennelly and Ryan.