Combination Strike does not work like that, you need to use an extra spirit generator to get the bonus 10% damage. i.e. Use one spirit generator with another one. Which is why the Fists of Thunder - Thunderclap + Way of the Hundred Fists - Fists of Fury/Deadly Reach - Foresight build was a huge DPS increase pre 2.0.1
I am in firm belief that Cyclone Strike is a mandatory in ALL monk builds. It's damage per second per spirit spent + utility is way to good to pass. If you do take Cyclone Strike, you could change the Serenity rune to Ascension for the extra second of immunity.
I this is just my personal idea but I don't think having Staff of Kyro makes your build work. I think this can work with almost any other reasonable weapon combination. Heck Won Khim Lau + another Lightning based legendary will work.
p.s, You have Seven Sins w/ +Cyclone Strike damage! there is now NO reason for you to choose Seven Sided Strike over Cyclone Strike. (Unless you're in a group with a monk who already has Cyclone Strike)
p.s.s To further clarify the meaning of Combination Strike it clearly states that for each DIFFERENT spirit generator used you get the 10% bonus damage.
To answer your points.
1-Combination Strike does work even with one generator and it worked like that aswell since vanilla release pre 1.03.
2-Cyclone Strike is good and I love it but it isn't needed when playing solo because things already come your way and Deadly Reach hits everything in 25 radius around you regardless of their position and Seven Sided Strike(Fulminating Onslaught) does sick burst for a champion pack which is what I need exactly because my build is around AoE and it doesn't have the best single target or 2-3 targets burst , also I don't use Serenity defensively the whole time , I even pop it on normal trash for the damage and in affixes like Frozen to avoid the freeze itself rather than the damage because I can survive easily.
3-You are right about Won Khim Lau , but I don't have Won Khim Lau and I found this Daibo and I made a build that worked around the Daibo and it is good even with not so great self found gear and I can clear T3-4 with it , you can always make builds work with different items , this legendary doesn't change the way a skill works it simply enhances it.
4-I have Cyclone Strike damage bonus on shoulders true , but again Seven Sided Strike is a burst aoe damage , usually it is enough to kill a pack or take it down low enough for my damage+serenity to finish them off , I explained why Cyclone Strike isn't a must have above.
5-already answered and it works just like I said and you can test it.
Thanks for your input though I just wanted to show that this legendary isn't worthless even in its current bugged state(damage is just like 1handers).
My monk is fully equipped with loot 2.0 and can go up to T4 but still requires some gear to be efficient so I prefer T2-3.
Also I am using Marquise because I had it in my Stash , even if I was to drop down to a star my damage will still be good enough.
Main Attack : Deadly Reach with Scattered Blows it gets the bonus from Lightning Damage and my Daibo and hits more targets than the other Deadly Reach runes most of the time and also has increased Knock Up chance that helps greatly.
Mantra : Mantra of Retribution with Transgression , it gives me attack speed to make up for the slow attack speed on my Daibo and it works great for 2handers because it doesn't rely on my attacking speed when lashing back at targets.
Dashing Strike : Mobility and Escape ability , I feel very slow without it and it saved me many times.
Sweeping Wind(Cyclone) : Lightning Based damage and hits everything around me.
Seven Sided Strike(Fulminating Onslaught) : AoE Burst damage on packs and gives me immunity for a second or two.
Cyclone Strike(Eye of the Storm) : Lightning Based Damage and great in combination with Sweeping Wind and Serenity(Unwelcome Disturbance).or
Lashing Tail Kick(Scorpion Sting) : Lightning Based Damage , good for Single target and a good way to burn all the Spirit Generated and offers some Crowd Control.
Serenity(Unwelcome Disturbance) : Is used both offensively and defensively in this build.I use it to avoid taking damage and breaking CC and in the same time I use it to deal damage from the Rune itself or even in combination with Mantra of Retribution.
Serenity/Mantra of Retribution : I love this combo because when fighting Champion Packs with Frozen/Electrified/Arcane Enchanted/Orbitor/Lightning Storm/Poison Enchanted or any fast hitting affix you can jump in the affix and pop Mantra and Serenity at the same time , you avoid taking damage and you start hitting the pack back so fast that you burn them down really fast , this also works in combination with Immunity Amulets or Blackthorne 4 set bonus.
Seize the Initiative : We get alot of Dex from gear so this is a great defensive passives.
Combination Strike : Just extra 10% Damage.
Beacon of Ytar : This is good with my Paragon points and gear I get about 31-32% Cooldown Reduction and it drops my Seven Sided Strike to 20 seconds and my Serenity to about 13.5 seconds.
This isn't a final build and I am sure a variation of this build can be done better than what I did , I just wanted to share this fun build and this isn't to show that 2handed weapons are fine because they are not nor is it to show my skills. I even died in this video once because I was lagging and I dashed into a pack thinking that my Serenity went up when it didn't.