"Since they are temperature released, if you apply the Osmocote once in the springtime, will you have a "fertilizer dump" issue? It strikes me that as temperatures rise in the springtime, the pellets will slowly deplete themselves so that come summer, you won't have a "dump" of fertilizer."
This can be true, unless you get a string of very warm days in spring--when temps don't drop below 70. The "threat" is there with this fert, although "dumping" isn't extremely common. It does happen. It's more common in summer, when temps are higher.
Another problem is people (especially newbies) tend to overapply the stuff. Overapplication amplifies the dumping problem.
Time released pellet ferts are not evil or "wrong." I think they're just an inaccurate way to fertilize compared to other methods. It also holds some risk--as do the other methods (but on the whole, organic pellets/mixtures and water soluable ferts are more easily controlled).