I have a 2009 XB12Ss and got the recall letter a few months after buying my bike in 2009. I was in for my first service and the tech notified me of the recall and that he would have to keep my bike for an indefinite period of time before he could "get the parts" to do the job. I asked him to show me what he was talking about. I inspected the brake line and said, "That cable is fine and far away from rubbing anything. It's safe. I'm driving my bike home today." He didn't want to give me my bike back for "safety issues." I told him that it was not an option and I was driving the bike home right now. He got the manager and the manager agreed with me that the bike was safe and they would order the parts and I would come back to have the recall done.
A few weeks later I was driving down the boulevard and I hear a Buell creeping up on me. So happy, we pull over to talk bikes. I notice that his bike has had the recall done and I inquire about it. I see "the parts" the tech was talking about was actually just a clear ugly ass sticker with the brake line resting on the outside of the fork. It actually appeared like there was tension on the brake line and turning the handle bars completely left would put friction and strain on the line. I decided right there that the recall would not be performed and the fellow Bueller agreed with me and expressed his regrets for having had it done.
The brake line is still 100% intact today, and I cannot see a scenario where it would ever rub the tire. I have no idea how a brake line rubbed against someone's tire and caused failure. I am assuming it was some numb nuts modifying his bike, screwed up his brake line, reverted the bike back to stock, and went to the dealer to get new free brake lines under warranty, at which point some safety agency randomly intercepted it and began a huff.