Wow, thank you for that link, that was a very interesting read. Just shows the power of intent when playing: If you play something staccato, even with the pedal down, on some subconscious level you still expect it to sound choppy and less melodic, which is why you hear more of the ritardando, crescendo, etc. dynamic effects when playing legato with pedal down.
On that note, that same teacher also always told me to think of certain things when playing certain exercises or pieces. For example, when playing a scale, she told me to think of a horizontal straight line, since (in her opinion) it was better for scales to sound clean and consistent, instead of varying in tempo or dynamic. I thought it was quite decent that she constantly reminded me that playing piano is much, much more than just the physical pressing of keys (although I never did see it as just a physical experience).
But then again: Why are those G#'s in measures 102 - 104, for example, written as dotted half-notes (minims), instead of quarter notes? Wouldn't the pedal specification at that part be enough? Is it perhaps just to emphasize that those G#'s are carrying the melody, and that they should be heard throughout?