Bruce-
My RLC model doesn't have the limit switches you speak of, and Jim never said which model he has on his '06 Patriot. My toggle switch is center loaded, so a person can't walk away anyway, since it pops to "Off" when the toggle is released. I can see where the limit switches on such a model as yours could be a bother if they repeatedly misfunction, and a person didn't ever leave the area of the reel. But I can also see benefit in being able to leave the reel on while guiding the plug, out of the dirt or mud, to and from the electical post at a campsite, and having the reel automatically shut off at either cord limit.
If his reel is a model like yours, it could be Jim's rear guide rollers were jammed wide open by the back cord collar when he stressed his cord to its limit as he admitted. The fix could be as simple as pushing back a little cord, as you suggest, and then tapping on the roller carriage to dislodge it, and reclose the circuit, and a little dry lube or WD40 on all the roller carriages to prevent a reoccurence.