Yes, I believe there was some confusion on my part - now I see where I was confused.
After analyzing your example (thanks) in Moho and then going back to the Moho Tutorials (thanks), then playing around with Moho a bit, I realized that no where in the Tutorials does it ever mention to use or how to or when to use these boning tools during an animation:

Translate bone, Scale bone, Rotate bone
Everything about moving bones during an animation in the Tutorials refers to use the MANIPULATE BONES tool to move bones - never does it mention the use of the Translate bone, Scale bone, Rotate bone during an animation.
(The Translate Bone is only mentioned during the set up of the character´s bones, Tutorial 3.2, not the animation of the bones).
Or I missed where it is mentioned, which is very possible.
I couldn´t find these three bone tools mentioned in the User Interface or Reference sections of the Tutorials either.
Now I see that it is probably better in a lot of situations to use the three bone tools (Translate bone, Scale bone, Rotate bone) during an animation instead of the MANIPULATE BONES tool.
LM - I must have missed it, but where in the Tutorials does it discuss the usage of those three bone tools (Translate bone, Scale bone, Rotate bone) in an animation?
This is where my confusion with the "new" bones dynamics settings - the Tutorials only mention the use the MANIPULATE BONES tool (Tutorial 3.4) - but instead, one should be using the other bones tools as well....which I must say I have never used until today. Every animation was done as it says in the book - use the MANIPULATE BONES tool.
If there isn´t a tutorial how about creating a Tutorial on using those three bones buttons in an animation? I am sure it would be a big help to all of us who thought that, following the Moho tutorials, that MANIPULATE BONES was the way to move bones in an animation.