Brad, thanks for your (exhaustive) testing of CT-S1 battery life - I thought about trying to verify your work with other brands of Ni-MH batteries, but couldn't bring myself to have factory demos playing in the background for 5 hours (!)...
in my similar setup (Ni-MH batteries, around 2700 mAh, internal speakers, volume 9 o'clock, no Bluetooth) I do get more that 3 hours' use before the declining power indication, as long as all six batteries are fully charged, and take about the same time to charge...if one or more of the batteries is not fully charged, or has taken significantly longer to charge (indicating some other issue?) my CT-S1 won't play for that long...there seems to be some variation even in packaged lots from the same manufacturer; again, maybe Panasonic Eneloops are more consistent and uniform...
I'm still using Ni-MH with the battery mode set to "alkaline", and when the "declining power" indicator comes on (after several hours use) it only lasts about 20 minutes until the "replace batteries" indicator comes on, and then shutdown happens within a few minutes...to me, that seems like the way the indicators ought to work: "declining power" means that the end of useful life is approaching, and you ought to think about changing batteries, while "replace batteries" means that you have to shut down right now and replace batteries to avoid possible data loss...the longer times you measured during declining / replace indicators might be useful on gig (where you shouldn't be using battery power anyway), but I'd rather not look at flashing LEDs most of the time...
There is some minimum voltage that the CT-S1 needs to operate, and battery voltage declines as capacity is used up...alkalines have a relatively constant rate of decline from 1.5V as capacity is used, while Ni-MHs have almost no decline from 1.2V until almost all capacity is used up, after which the voltage drops quickly...so the battery mode may just change the levels at which the power indicators trigger, to account for these different rates of discharge...???
Anyway, it looks like the CT-S1 does meet its battery life specification...