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Mike;
Some of your info is correct and fine, some not.
Dielectric grease MAY be fine to use in many cases, but it is still a non-conductor, and is NOT the thing to use (and the thickness of the film can affect how it works in a particular application, see below, but it sure-as hell-does not determine its physical properties - in the case of dielectric grease, once a non-conductor, always a non-conductor!)
As I state in Anti-Corrosive Paste for Electrical Connections, if either paste (conductive or non) is displaced and makes a Gas-Tight-Joint, that is good, but if the point is to make a connection, particularly a low-contact pressure type where displacing the paste is not so certain, why put an insulator in the path and decrease the cross-section (and current handling capability) of the conductor, or seal in any contaminants on the surface (or embedded in it) under an insulated film. Once squeezed between surfaces of high contact pressure OR low, the zinc particles in conductive paste "act as electrical "bridges" between conductor strands, aid in gripping conductor, improve electrical conductivity and enhance integrity of the connection" [quote from Burndy's product description].
...and if you apply Zinc paste from 10,00ft, or with a 2" wide paintbrush and there's a chance of creating bridges to adjacent connections, it's not even a problem for low voltage applications as ours, because it IS non-conductive if not under pressure between two surfaces (exactly like you incorrectly suggested dielectric grease works).
If, as you state dielectric grease is "absolutely the right thing to use in electo-mechanical connections", then zinc anti-corrosive paste is RIGHTER, and perfect for use ALL connections!
Cheers
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