"I have never seen an instance where moistrure seeped behind the hardener -- assuming you removed all of the pithy, punky wood in the first pace."
Well, there's the problem. Removing that much deadwood on some trees would remove it ALL. I've worked as a contractor, rennovating old homes, so I'm pretty familiar with how to use wood hardeners.
Applying wood hardener on a piece of woodwork, decking or strucutural wood is one thing. Applying it on artistic deadwood on a bonsai is another. The applications are not aimed at accomplishing the same thing. Using it to work on a house usually means you're after removing rotted dead wood and covering the stuff up with either another piece of wood, paint or sealer that is designed to keep water out.
With bonsai, you're trying to preserve artistically important elements that will be exposed to the elements. There is no paint, cover board, etc. to prevent or forestall moisture entry. Water will find a way in, even wicking up from the bottom of the deadwood from the soil.
I'm not saying this is common, but I've seen it happen, particularly with soft-wooded species like wisteria and rose wood.
It's something to keep in mind in choosing what to apply to deadwood elements that aren't already rotted. Using a wood hardener on sound deadwood is counterproductive, IMO.