Hey, NotsoFresh!
Welcome to the forums, and thank you for the extremely useful info! It's nice to get input from someone with loads of "hands on" experience!
Regardless of the actual root cause of the "howling" problem, I'm really thinking using the white Nexus grease for coaster brakes is a bad idea. I just recently put together a trike, using the rear end from a 76 Schwinn 3sp Tri-Wheeler. The hub is a Shimano 3CC, and I'm guessing had not been serviced in 35 years. it was working fine until one night, out on a test ride, the coaster brake locked up. I was putting off servicing the hub until I was ready to tear the project down for repaint, but had no choice, now.
Turns out the brake shoes had fused themselves to the shell (there was hardly any grease left). They popped off easily by prying them off with a small screwdriver, and there didn't appear to be any damage or strange discoloration on the surfaces. I decided to rebuild it using the white Nexus grease, even on the brakes (was curious). Well, the hub's been working fine, EXCEPT, now under hard breaking, I'm getting brake howl. And like the Nexus howl, you not only hear it, but can feel it vibrating through the whole bike. Not sure if it's related to the previous brake lock up, the white grease, or both. When I get the chance, I'll redo it with something different, and compare.
Also, I was just recently talking about the issue with a bike mechanic, and he suggested using Park Polylube 1000 for the geared hubs, for the whole internals, even the brakes. He claims it will cure the squeal, and also claims his Shimano rep endorses the use of the Park grease for Nexus hubs, over the white Shimano stuff.