True! about the pilots and their planned taxi route, Lou.
Really hard to understand how such things can happen and I don't think that Airbus officials
internally feel happy about this outcome while the outside of course stays on the "meh, such a small incident" line.
Since the pilots flying the airshow displays are from the small test pilot pool, this is even more amazing and exceeds that former incident at JFK (with the fast turning of the CRj) by far in my eyes.
I think the later Yaw Damper systems included more than a simple on/off logic, so this may partially explain why you let them stay at "on". "On" therefore means that the usage is allowed and the smartness in the electronic circuit then triggers the actual activation, depending on the sensed flight phases and circumstances the plane is in.
They had a "digital yaw damper system" installed on all later 737s.
"Off" therefore is the "not allowed" setting, rendering the autoflight and also detection systems on the modern birds to non operational.
The logics in that system allow you to "grab" a runway and also to maintain directional control with the rudder in crosswind landings and takeoffs with the system enabled.
Some other manufactures (e. g. Embraer) recommend the YD
logics set to off just before landing though, so the system implementation seems to differ here and there. All I've read about the 737 (from -100 up to NG) says "on" (which means that the switch is set there and the logics in the system then decide about activation, so see it as a "soft on" while "off" is a "hard off").
I've read about the old 707 having at least two revisions of the Yaw damper system. One with the need to turn it on and off manually, depending on the flight phases and another one where you just check "on" at pre-flight and leave it there throughout the whole flight.
I think the CS rendition is one of the always on things, same on the 727.
For any autoflight (like e. g. tracking the LOC) the Yaw Damper is needed/assists the AP.
Regarding the gear "look spots" on the 707 I found this one.
Could be that the manual also included some hand written notes in the way of 'place the ladies here'.