The misconception of the "Dead Button" is that the button can be placed in space at a place where there is no active player. The button should always be placed at a player at the table. That player is one that has paid blinds and is the last to receive cards on the deal. So if player were busted on the button or the small blind the button backs up, and yes a player can have the button twice. The button is the device that simply marks the player to be dealt in the last position.
Therefore, you cannot be dealt in on the button because coming from another table there is no button in the spot you are about to sit at, it always belongs to a player that was involved in the last hand at the table. Whom exactly has the button is determined by the factors of the hand before you got there, and only the players in the hand are eligible.
We are only confused here because people believe there is a dead button, there is no such thing.
Going over this thread some months later (7-17), I have some thoughts.
Roberts rule here is simply the way most people do it. However, it doesn't mean a tournament director could not do something different if they wanted to. (Roberts rules are not official anywhere unless someone decides to use them, and even then they are welcome to pick, choose and modify according to what they need and want).
There really is no practical reason that you could not deal everyone in after bringing in new players even if a few of them were under the gun between button and blinds. Its just a matter of ignoring Roberts rule, and codifying your own. For some reason that spot between button and blinds has been taboo to allow players to play in. But reality is there is no reason not to deal them in there besides that it just seems odd to people. In cash games that require posting players may post for there first hand between the button and the blinds. Why not deal in tournament players there?