I think the story goes something like this, Or at least this is my view:
"Back in the day, when the bike was first released they gave one to some 'bike journalists' for an extended test. As the R65 was perceived and marketed as a higher, more freely revving, sportier model, the journalists proceeded to rag it down the autobahn (speed limit free freeway, only to be found in the Father Land) for an excessive amount of time at max revs. It eventually dropped a valve."
This is where some of the perceived R65 reliability issues originally stemmed from (there is a pun in there, when you read on).
BMW had changed the valve construction to two piece, friction welded on the stem, (?) items that proved to be less than perfect (probably a quality control issue) especially when ragged at high rpm for extended periods...However this construction method for valves was used across the range with R80s and R100s. However the unreliability was 'all R65' as it was the new model, even though the new larger models still suffered from the same issue. Some people will insist that since the valves on the larger models were bigger, they were less prone to failure. I would suggest that if you have a weakness in the valve stem through a poor weld - the stem is gonna fail sooner rather than later - whatever the valve stem size. Many got away with it, a few did not. But don't get this premature valve failure mixed up with recommended top end refresh intervals.
BMW fitted an 'rev light' at this time. I am not sure it was fitted to stop people from over-revving the engine as a result of the above test debacle, by giving them a time to change indication, or whether it was dropped to stop people hanging on the those high revs for extended periods, as "it must be okay as the rev-light is not on". Whatever, the light disappeared before 1979 was out.
There was also the issue with the spring in the gearbox which appeared at the same time, again it was a problem that 'only the R65' suffered from, as the new model, although the gearboxes are shared across the entire range (?)
Add this to the fact that the R65, as a lower and entry level model, it was looked down upon by many, especially in the US of A (Boxerworks)where bigger is always better, as a bike for girls and those that are not so long in the leg. When, in fact, it deserved better.
I have now seen the light in the flesh, but it was not until lucky_Lou showed me his!
People may correct my errors if they wish.
Rev. Light