Theoretical maximum is not 8/9ths, but a non-existent perfection. That 8/9th would be a practical maximum. And that is based on information gleamed from a wind tunnel, which you give reasoning for the limitations involved. Nobody is trying to hit that level of precision here. Nobody is aiming at 2/3 or .5 efficiency, which requires substantial budgets. This is just an exercise in language. There are no legally defined terms that restrict an advertisement from claiming the ability to harvest higher than 59.3% of available energy by area or volume.
You have clearly not understood what I have written. I don't say that the maximum Cp can be higher than 16/27. I only say that a maximum Cp of 16/27 corresponds to an aerodynamic efficiency of 8/9 and that you must not talk about efficiency if you mean Cp. So the maximum efficiency is 8/9 if there are no losses but that is because, if we talk about efficiency, we relate the generated mechanical power of the rotor to the area of the stream-tube far before the rotor and not to the swept area of the rotor which is used for the definition of the Cp. Believe me, this is way how the aerodynamic efficiency and the Cp are defined in aerodynamics.
The fact that a Cp of 16/27 corresponds to an aerodynamic efficiency of 8/9 demonstrates that the real conversion of the kinetic power in the wind to the mechanical power of the rotor is much better than if you take only the ratio 16/27 of the maximum Cp into consideration. But we normally use the Cp because it is more practical to use the swept area of the rotor as reference area for the undisturbed wind speed than to take a 2/3 smaller area far before the rotor. But if we calculate the generated mechanical power P (using formula 4.1 out of report KD 35) we have to use the undisturbed wind speed V and this is the wind speed far before the rotor or the wind speed in the rotor plane if no rotor is placed. That is the problem with the Cp; one compares two different situations which can't happen at the same time. One divides the generated mechanical power of the rotor by the power flowing through the rotor plane if no rotor is placed.
Many people believe that Cpmax = 16/27 is the maximum fraction of the kinetic power in the wind which can be conversed into mechanical power of the rotor. But then my question is: What has happened with the remaining 11/27. Nobody can answer this question because the believe that 16/27 is the maximum fraction which can be conversed into mechanical power is incorrect. Cpmax = 16/27 corresponds to an aerodynamic efficiency of 8/9. If now it is asked: What has happened with the remaining 1/9? The answer is that 1/9 is just the kinetic power which is left in the wake far behind the rotor.
The derivation of the Betz coefficient is given in chapter 4.2 of my report KD 35. I have used the same method as used by Betz in 1926. So what is done is that the kinetic power is determined in the area A1 far before the rotor and in the area A2 far behind the rotor. The difference is the mechanical power which can be extracted by the rotor if there are no losses. If you compare this mechanical power to the power available in the area A1, you get the aerodynamic efficiency. If you compare this power to the kinetic power which is flowing through an area equal to the swept rotor area, for no rotor in place, you get the Cp. So if you use the Cp in formula 4.1 of KD 35, the maximum Cp is 16/27 if there are no losses. But in this formula you have to use the swept area of the rotor and the undisturbed wind speed far before the rotor.
The real maximum Cp is much lower than 16/27 because of the four reasons given in chapter 4.3 of KD 35. So anyone who claimes to have measured a Cp higher than 0.5 is a liar or he has measured the wind speed at the wrong place.