But Old Kaioshin knows such an obscure detail such as Saiyans being able to transform after potara fusion, but wouldn't know the rule of one of the Kaioshin's main items? Doesn't add up to me.
From the way Elder Kaioshin talked about Super Saiyan, it sounds like he's seen comparable power ups with other races. Plus, the only prior experience he knew about of a mortal using the Potara was in a fusion with a Kaioshin; himself.
If Metamoran fusion didn't hinder transforming once Goten and Trunks mastered it, I don't see why from his perspective a fusion Elder Kaioshin hyped up as vastly superior would be inferior in that regard.
I really disagree here. Goku is asking Old Kaioshin questions and he's providing him with factual answers. I really don't see why he would make assumptions on the fusion if he wasn't 100% certain. It really doesn't sound like he's talking out of his ass to me. He's made calculations on this battle already and was completely certain.
It is a cop-out but it could easily be explained that the 1 hour limit on mortals was discovered after he was sealed, so he simply didn't know the fact.