I didn't get any replies to my original question on this forum. I also contacted Bang & Olufsen America, they had no idea why the timer function on the wireless units didn't work, but said they would contact Struer and then get back to me. Predictably, they did neither.
I finally contacted customer service in Struer myself, and they suggested that I check to see if my three Beolink Wireless 1 units all had the latest software version. Unfortunately, there is no way for the end user to check which software version was installed at the factory, as it is not listed on the units or shipping cartons; it can only be determined by a serviceman using the software installation tool.
I had the local B&O service tech check the software version the next time he came around for the latest round of software upgrades for my BS3, BV7, and BV8. Sure enough, all three of my wireless units had the old original software version, even though they were purchased quite recently. Apparently BOA is shipping old product from their warehouse; neither they nor the dealer are bothering to upgrade the units before delivery.
The good news is that, after upgrading all three BL Wireless 1 units, rebooting, and resyncing them, the timer function now works on the two Beolink Wireless 1 receiver units, as well as on a BS3500 that is ML hard-wired to the main system. An unexpected bonus is that it is not necessary to activate the timer on the Beosystem 3 menu in order to have it function on the link systems. The timer on-off menu setting on the BS3 affects only the main room speakers connected to the BS3; the link systems use the timers programmed in the main system, but are activated independently from the main system, either manually by touching the remote IR sensor timer button or else via the appropriate Beo4 commands. None of this is explained in the manuals with any of the components, by the way.
The bad news is that the software upgrades for the BS3, BV7, & BV8 still didn't remedy most of the problems in those units. So what else is new?