Jay, you need to make sure your floor has a good vapor barrier to protect your plywood and other flooring that you intend to install. As far as the joint between the Kerdi tray and the flooring buildup, I guess that you would have to be triply certain that you've installed enough caulk between the tray and the plywood, and the shower tile and the plywood to keep any water from sneaking past that joint.
Let me suggest you save yourself a bunch of time and money by busting your the concrete and recessing the shower. You can still use the Kerdi drain, but you can return the tray. You will be doing most of that anyway. You'll just have to get past your fear of playing in the mud. Your concrete slab can be tiled, and you won't have to worry as much about vapor barriers, rotted subfloor, etc.
The Kerdi drain was originally designed to be installed where there is access to the underside of the shower. Installing it on grade with a Kerdi tray presents a few problems, most of which is the lack of visibility. You have to cut the drain pipe exactly the right height, then glue it on the pipe. You get one chance.

Installing the Kerdi drain where you build your own mud bed allows you to mis-calculate a bit, and still recover. It also allows you to install your drain in the center of the shower, too.