Thanks heaps for the pics Mark, has cleared the muddy water quite a bit!
With regard controls, if we just consider the volume control for the 68 setup with remote controls, we end up with two volume controls, one on the radio and one on the remote panel. Did both volume controls affect the volume level?
I'm pretty sure the multiplexer is a legit mpx stereo decoder, not simulated stereo.
The grey lead running from the head to the multiplexer in you pic above is muticore [from other pics I have seen] and I'm sure it would have carried the composite demodulated audio [L+R, L-R and 19khz pilot] from the radio to the multiplexer for demuxing to left and right stereo.
The other give-away is the green stereo light on the remote controls, if that is off when your not tuned on a fm station or the station signal is weak and on when you tune a fm station of good signal strength, then that's pretty good evidence that it is a true mpx stereo decoder that's driving that light.
The audio path required to include front/rear fade when you only have two output stages, is rather convoluted I must admit, especially since the two outputs are located in different places!
I think the difference your seeing between your pic and the top wiring diag. is that your pic is of the setup required when you have D55 - console, whereas the wiring diag. is what you have when you don't have a console - multiplexer and controls all in one unit.
This is also borne out by the fact that it says on the controls for the top diag. "Remote control head - Part of 7305221" which is the multiplex adapter.
So the speakers are still connecting to the multiplex adapter, it's now just in the same box as the controls.