As you said, the Ford procedure first allows the pump to cavitate after having pushed out 3 qts or so.
Then you put in 10 qts. At this point the tranny is 7 qts overfilled ... but you really aren't going to operate this way, for the next step is to pump out 10 qts (or whatever).
Now you button everthing back up and refill the missing 3 qts. At least, this is what I think it is saying.
It's not a bad procedure; especially if after the first 3-qt pumping ... one were to drop the pan and mop everything out and replace the inlet screen. Of course, you would find about 3 1/3 qts in the pan to be dumped.
Then when you put in 10 qts, you would only be overfilled by 4 qts or so.
I just don't like dealing with the tubing.