Yea well, let's hold of the thank you's for a bit, for we have barely cracked a fraction of these issues yet
So on we trudge to get further into this:
You are absolutely sure that Midi Out in your CoreMidi setup actually works? I mean, when in the Audio/Midi setup, you can verify that output sent from your computer is actually being received by your keyboard!? For in all honesty, it rather seems like it isn't.
I must admit I am quite stumped by that "disappearing" CoreMidi issue that I simply have never seen before
That bit alone makes me want to advice you to take this straight to Support or Live Help at least to track this down.
I'm also surprised that "fiddling" with Local Control hasn't at the very least given you different results (Off or On should at least make a difference, even if not the difference you may have wanted), especially in terms of what you hear from your keyboard when playing. So that's a strike two, things not looking to good here
What I can tell you though is that your idea of seeing the notes as you play is something that BBox just cannot do. So at the very least that's one less thing for you to worry about.
Hopefully other user will start chiming in on this thread too - make that, other MAC USERS, to make that abundantly clear!
p.s. It's a good idea to do what I and most users on here have done and edit your profile to indicate at least your fundamental computer system and BBox version (you need to do this yourself by hand in your forum profile settings). Saves a lot of hoops you'll otherwise be asked to jump through each time you face some problem.