I got a response from Damon,
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Hi Bruce,
Yes I have heard of this and you are correct with the installation of the
valves.
Respectfully,
Martin M. Johnson
Regional Service Manager
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I guess adding shutoff valves to the overflow lines will prevent water loss while traveling but Hurricaner mentioned that the older models had the overflows exiting higher which might be a better solution. I think the overflow is also the vent to allow air into tank as the water is used which might create a vacuum in the tank if water is used while the valves are closed. Also I see no reason for 2 overflows and putting a valve on one may be enough to minimise the problem.
If anyone has come up with a better solution then adding shut off valves to the overflow hoses, the RVnoob would be greatfull.