Most of what you said is true but it says nothing about obtaining it
The idea of the post was that exercises where important. As to the reasoning why it is important, I pushed the idea of balance and control of a group of notes with one action. Also the idea that bare basic finger combinations must be developed, some begniners naturally have it, but a lot more DO NOT. So we must insist that they exersise the most simple fingering and learn how to play it not with individual fingers but try and explore how we can play a group of notes with one movement.
The exact process as to how you improve on this cannot be written in words. It is done with direction. As too it is imposible to write in words how you would train a world class soccer team. You simply cannot direct effectively enough and deal with the variables that are unknown unless you observe with your own eyes, you must be there and tell them what to do. Piano is no different. You need a coach to learn any instrument well, unless you have a natural musical ability and confidence in your own musicality.
So our hands tied, we find it useless trying to explain how to
exactly play piano. Some people try, but in the end it is useless, confusing and not universal. So we must describe an understanding of how to play, concepts such as balance which I have been trying to explain repeatedly in many different ways. These act as compasses to our general playing, but cannot direct us unless we practice it and aim for the ideas you read and are taught.
It is the same when you are taught by a teacher. They tell you this and that, show you how to physically improve yoru playing by doing this and that, but when you go back home none of that helps unless you practice and consider what you where taught. If you go back and practice the way you normally practiced you are not using your teacher. But if you practice and consider the ideas they explained and demonstrated you make changes and improvements to your playing.
The same goes for when you read concepts of playing piano. You must consider it while playing, what the heck is balance, centre of gravity etc etc. How are you supposed to pivot about a point and feel balance? I guess one way to demonstrate it would be to tie a pencil a little underneath your middle finger (so you dont restrict it too much) and across into your palm. Try to play piano like this. This is balancing about the 3rd. Take away the pencil and try to maintain that balance and feeling of support at the third. When we play pieces this balance constantly shifts about parts of our hand. This is a really rough idea of the feeling of balance when we play.
So my point was just that, saying you need to develop balance doesn't say how to, and I'm sure you can play Hanon incorrectly as much as anything else so I can't see how "playing Hanon" is how to achieve it either.
So the idea was balance. We use hanon as examples to demonstrate this concept of balance and control. It is the simplest way to demonstrate it. The basic three:
1) CEFGAGFE | DFGABAGF etc. Fingering going up keyboard RH:12345432 LH:54321234
aims for general balance of the entire hand playing a scale form. We feel the balance from the 3rd finger in this case.
2) CDCD AGAG| DEDE BABA etc. Going up keyboard RH:1212 5454 LH:5454 1212
aims to strengthen 4 and 5. Again we are feeling the balance from the 3rd figner even though we are not playing it. If we disbalance our hand and turn the wrist when we play 12 or 45 we are neglecting balance. We must keep the hand straight using the centre of gravity about our middle finger no inefficient turning of the wrist.
3) CEAGFGFE| DFBAGAGF etc RH:12543432 LH: 54123234
aims to strengthen the middle fingers. For the RH as we go up the scale the balance exists between the 3 and 4, but as we go down it is between 2 and 3.
Still I cannot describe as to how you feel this balance except with that pencil experiment. And how you use it to control the group of notes must be ultimately learnt through your own experimentation maintaining the consideration to balance/control.
If all piano discussion required was stating that it's only "balance and listening" and that succinct phrase was sufficient to describe it, then there wouldn't be much more to say. I was just observing your own evidence to the contrary.
It is suprising but true, all music playing is about is relaxation and listening. To be physicaly relaxed while playing and constantly listening to the music you produce. Evidence to this is just clear, a deaf person can never become a concert peformer because they cannot hear themselves, despite their amazing ability they may have. (eg: Beethoven).
But relaxation, heck that is a HUGE issue with tenticals that spread all over the place. When good pianists play something that they have known for many years they don't even consider the notes they are playing, it is all automatic. There might be one or two notes which must be observed but either than that the majority of the playing is without conscious effort. There is a great deal of relaxation in our playing when we play things we know very well. But how did we achieve that relaxation? With concerntrated study! That study in many different areas. but in the end our efforts all try to achieve the best sound with the most effective physical excecution (technique). To acheive the greatest sound and train our listening is a huge topic so is technique. So it is not wrong to then categorise everything in two parts. That of Listening (creating the most ideal sound and controling it with our ears) and of relaxation (attaining the most efficient physical technique).
Whatever practical steps / means / description / demonstration is required, it isn't saying "you need to develop balance and relax" neither is it, imo, playing a particular group of notes.
The teachers that I have respected greatly all mentioned balance when playing piano. How to attain it was always discussed in context of pieces. Famous teachers and concert pianists really do not deal with beginners though, they don't have the time for that. I however have a lot of time for beginners. I can't say to them, here look at the Ondine from Ravel's Gaspard de la Nuit, I'll show you with the opening tremolo in the Rh what balancing the thumb means. yeah right..
Hanon is the simplest way to describe the idea of balance. A group of notes create a centre of gravity. This creates balance to the hand, if we neglect this balance and move the hand all over the place our playing will be inefficient and not natural.
In the context of this thread I'd argue that playing Hanon or a piece is similary not going to develop it by magic - thus my point "how to play" not "what to play" - if you know how and practise that with Hanon or something else you probably make progress. If I played Hanon now for the next x years without a clue how to do those movements I'll get nowhere.
I agree whole heartedly. And that goes for anything you do with the piano. Mindless repetition will get you no where, but consideration to pianistic concepts and direction from a teacher will get you somewhere. This holds true unless you are very interested in the physical nature of playing the piano and like to experiment yourself, but in the end you will realise that we are trying to make "difficult things feel easy/automatic".
I have said this before but what make a good pianist is someone who is obsessed with the physical nature of playing the keyboard (and of course the search for the ideal sound production in a given piece). A good pianist always wants to make things at the keyboard automatic, which I categorise with RELEXATION and try to explain with a concept of BALANCE and which all is commanded by LISTENING(which was not of discussion here rather the physical nature of playing which is initally drilled to the beginner with Hanon). Of course techinques to improve our Memorisation is also not discussed, nor is improving our sight reading skills, musical interpretation etc etc all which aid the speed at which we discover a feeling for BALANCE in given parts of pieces, which then creates RELAXATION with our automatic playing.
If we practice peices with no concept of balance we will take a huge amount of time to find an automatic response to deal with the memorised notes. This is why Hanon is so important for the beginner, so that they quickly understand what it is to balance their hand, what it is to play the basic fingerings that they will find in the first peices they play. If you can learn and memorise pieces fast then you are not a beginner. A real beginner I assume is helpless and needs to be guided through it all, that doesnt mean they are spoon fed, again guidance is useless unless it is practiced yourself, if it is just in the head or on paper it doesn't mean anything.
Perhaps you read my comment as saying you couldn't or had only learnt to say "Hanon"? It wasn't saying that. It was the "Beginners can't pick a piece" but if they read this thread and picked your CEFG stuff and "Hanon" it would appear they have. Didn't take long to learn that did it? Although I think I buy the idea of picking 100 pieces to learn over n years, along with a teacher's guidance if the pieces are too hard / easy and their knowledge of repertoire in general is better.
Perfect! I agree that Pieces are better than excerises. But if you have no concept of fingering control, balance etc which you develop with hanon and try to ONLY learn it from pieces you might find your progress slow. Excerises are so easy to learn, they will only help. They do eat away at your time like pieces do. Time is critical factor, people just don't make enough of it for their musical study in reality, exersises are very fast to learn but difficult to master, it is good to use them because of that. Pieces on the other hand take time to learn and are also difficult to master. I waste 2 months on 5 pieces, or do I spend 2 months learning 5 and alongside it master basic fingering excerises as well as chords, arpeggios, scales the building blocks of music. All good teachers teach techinque and pieces alongside. They teach technique through pieces but many of them focus it through scales, chords, arpeggios which are requirements of most official muscial examinations I know AMEB for sure requires it. A beginner however does not learn enough about finger control through scales and chords and arepggios. These things can be totally confusing for them, so something even simpler to fall back to is hanon. It describes the most elementary movements and control needed for the keyboard.
They are sheet music.They don't demonstrate anything to do with physical movements or balance or control. They are just printed notes. Although the former does contain some commentary about raising fingers high etc, aiui much of that is largely refuted higher in the thread and elsewhere by know it alls who didn't learn I suppose 
So if I throw the holy bible infront of you, you will say, that is nothing, it is printed words. Hardly. Same with Hanon, the dots mean of course nothing if you don't how to read it. Music is another language and means a lot, it is never just dots. Interpretation to these dots is huge, we can write ideas as to what the dots try to encourage, which I think is balance and thus say balance a billion times

. Perhaps you want to accent this or that, perhaps you want to change this, add a note here, perhaps you want to leave it alone and play it like it is. How then are we supposed to feel when playing it? What a various answer that is! So just simple string of notes mean a lot because of the huge amount of different physical responses it creates in every single person that tries it. But in the end there is only one aim of the exercises, and that is to gain dexterity and speed of your fingering through increased balance.
You make a good point though, but it's not me that "knows it all", I've just read a lot of stuff here from others that is a better argument than yours IMO and some of it seems to be different and opposing.
For example?

Who opposes hanon? Who says that it is useless for the beginner? Who can say that it does not train balance and finger control in the simplest way? Please explain for me so I can teach my students something easier than Hanon to describe balance, it would really be a revelation to me.
Similary, since I do understand your last post, I now "know" that playing the piano requires balance and a fairly lengthy explanation of what that means. I can discuss that, repeat it, agree or disagree with it. Albeit with absolutely no effect at all on my ability to physically play or listen.
Of course nothing you read will help you unless you apply it. That is just logical. But if you read something, say what the heck is that I don't agree but I'll give it a go, you can only learn something from it. I am constantly trying things people suggest on here even though I think it is absurd. Like how to strengthen the LH, do it by using it to do daily things. This works which I thought was great even though I had to do it thinking this won't do a thing for my piano playing during the first few weeks. It is actually hard to tell your brain to take cups out of the cupboard with the Lh instead of Rh, especially if you are RHed like me.