JK, if Dungey does go to KTM I don't think he will be riding the 350, if I'm not mistaken none of the KTM guys have ridden it this year in the outdoor series. Not sure KTM will suffer like Ducati though, they do relatively well and have multiple World Champions at the international level, and given that DeCoster is there I expect that if Dungey does go there, we won't see any drop off in his performance.
As far as Reed, I think he looked better at Palo but got out of the way of the Ryans once caught so that he wouldn't factor into the championship. I'm not a big Reed fan, but he's a pretty tough hombre to come back from that major get off. He admitted that mentally that crash effected his confidence.