Adwords Duplicate Keywords with Different Match Types - Good or Bad?

The rep is wrong, as many are because they don't understand the system. They don't have practical experience for the most part and get fast-track training for their job.

Where he is wrong is that your keywords do not compete with each other. Adwords will use the best keyword depending on the situation. If there's an exact match, great, it will use that. If not, it checks for a phrase match then broad (BMM) and finally plain old broad.

He is also wrong about the these being duplicate keywords and impacting QS. If you take a look, you'll see that your QS is the same for all three match types. Adwords treats them as if they are. So you'll never see a different QS on them in the same group (not 100% sure on the BMM, it may treat it differently, but plain broad will be the same).

Exact matches don't always have a higher conversion rate. If they do in your case, great. But there are other factors too. I'm not seeing the bigger picture just with a statistic or two, more information is needed. At least you are doing well with a great QS. With QS of 9 and 10, you are in the top 10% of advertisers for those keywords. Your ads are effective at getting clicks and those types of ads tend to convert better as well.

I don't bid on the keyword level but on the group level. Usually, all match types of the keyword will be positioned about the same and the CPC will be about the same too. Given your QS, I would bid to place in the top positions, first and second, where you will get a boost in CTR but also conversion rates are often better there too and you may get a higher impression share, especially in crowded areas or your current bid places you further down. So as far as I'm concerned, you are doing things right.

Your approach is right, and to be honest, genius.

If you bid higher for exact match, the ad rank on exact match will be higher then the ad rank on the phrase match and broad match. Since you already said exact match has higher conversion rate, it will be the one the spend the money to the right audience.

Lucid's completely correct about all match types having the same QS's. It is the same for BMM as well.

Everyone has their own style, but I would personally be using tiered bidding for the different match types. As you mentioned your exact match keywords have been out-performing the others, so it's worth spending a bit more on those searches. This is often the case and people will use ratios similar to:
Exact Match: $10
Phrase Match: $8
BMM: $7