I actually think that I understand what you are saying finally.
"As an example; you say; "The luminosity curve is the findings" That's the conventional view, allowing the LC much more import than it may contain. The LC is a 'CURVE' built from data, not the data itself. It is CREATED FROM the data by applying certain assumptions, then implying interpretations (really other assumptions)."
Of course, intensity, spectrum, and direction are what astronomers measure. So luminosity is intensity, what you measure, along with a factor to account for distance. This is still what is measured and there is a lot of corrections and calibrations, but if you do not believe in a luminosity model, come up with your own.
I assume that recycling luminosity must have been done...I just cannot find a single example out of how many other zillion models for quasar luminosity. The way that you were talking, I thought that you might have done something to show a recycling luminosity that agreed with the findings. When you say the galaxy disk evaporates, there is absolutely no evidence for that statement as far as I can tell. Since there is no evidence, that is what I would call falsification and then I would move on.
For matter time, I try very hard to find out if things are measured well enough so that there is no chance of a 0.283 ppb/yr decay. It would be great to have more precise measurements, but instead, everywhere I look, I actually see evidence for decay of matter. So I would greatly appreciate anyone who can show me that matter does not decay over time because then I can be done with it.
You keep saying the recycling model fits perfectly, but the figure that you show does not seem to show that. Plus, you really need to be careful about smoothing and just bin the data without smoothing. The red shift ratio z is a little ropey as an axis since it is, as you say, a derived and dimensionless number. Why not plot versus velocity of recession?