I guess it would depend on how we define carelessness when it comes to water depth and an atv. For me if the OM states not to go deeper than a certain # of inches, and the driver goes deeper without having taken some other measures to provide a better seal against water getting into any portion of the motor or tranny, then to me it's carelessness and not the fault of the drive system if it does slip, or completely fail.
I understand the difference in the Honda trannys, and the belt drive systems, but they are usually called a CVT right? Continuously variable transmission CVT, So, Ron it is a transmission, even if not in the style of an automobile like Honda is using. Saw a television ad for some new car the other day and they bragged about it's CVT. All transmissions will eventually wear out, including Honda's. If overloaded the CVT belt can certainly slip and fail. Polaris Rangers (500cc model at least) have been known for that, thus the importance of using the "Low" range setting when loaded or towing. I think the CVT is a good system, likely costs a good bit less originally and later if repair or replacement is needed than the Honda style transmission. Although that Hnda transmission is pretty slick!