Yes it is in the transmission, I suspect those sensors on yours are for the ABS, the bearing will have a magnet in the outer race, that's how Harley do it and Indian copied everything they do from Harley.
I have only ever seen excessive cupping on a front tyre and I am certain it was caused by running for about 100 miles on a scraped road in Texas. Other than that I only ever see moderate cupping on tyres that are close to the end of life but again more front than rear. It will be interesting to see how the Cobra Chromes end up especially with the new shocks which have resulted in the last of the chicken strips disappearing.
At some point the Chinese bikes will meet the quality and reliability standards that Europe requires and then it will be game over for the japs. It is possible that some of the Chinese bikes have already reached this standard but they need to be proven over time.