Oh jeez!
Key being "thick bead." Chrysler have been using an RTV sealer for many years to attach/seal their transmission pans. As always, if you go hog wild, things may not work as well.
IIRC, there was a vent port on the 700R4s, very close to the edge of the pan rail that could be blocked by using too much RTV, but this is not the same as RTV being injested and clogging the pump intake. If the instructions say use a 1/8" bead, use a 1/8" bead.
I use RTV on all the Chrysler 41TEs that I service, I also get at least three applications from a small tube of RTV. Haven't had a problem in 14 years, though it would be nice if the local Dodge dealership would stock the friggin re-useable gaskets anyway.
Anyway, cautions are good, but the caution should be appropriate.