Good theories Steve. But I would have to disagree with you on the lines, if what you're saying is that the T206 uncut sheets had the lines between the cards.
You mention the diamond cuts, which as everyone knows, is a big "problem" with the cards. Along with the diamond cuts, another common factor is that many T206s are oversized. If the uncut sheets had the lines between the cards, as guides for the cutting, then these oversized (horizontally) cards should still have a line on at least one side. This would be just like 1968 and 1970 Topps baseball cards. It is not uncommon to see narrow white lines on the edges of cards that weren't cut correctly in these two Topps sets.
The fact that we've never encountered an oversized T206 with a line on the side, would seem to indicate that there were no lines to begin with.
Steve
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