1)An SVS 13" Ultra with its ports sealed shows app 5% THD at 20hz at 100db anechoic. In a real world listening room, that's presumably a crushing spl, so could one safely assume distortion is no issue?
It is pretty impressive yes but a far cry from a crushing SPL due to the fact we can barely hear 20 Hz. For comparison it would sound as loud as a 40 db SPL note at 1 Khz...a little above the rustling of leaves. The good news is that if your sub can achieve 115 db SPL then it suddenly becomes much more audible - as 120 db SPL will sound like 80 db SPL at 1 Khz - so clearly audible even above a conversation. Also there is not much at 20 Hz anyway so the biggest benefit is the lack of distortion at higher harmonics rather than any bone crushing sound.
The reality is that a great sub will NOT sound devastating on a 20 Hz pure tone at 100db SPL - is will be mostly inaudible if it is a good high quality sub!!!
Is there any benefit to looking for a lower # here?
probably not but lower is always better - it just may not be audibly perceptible.
I assume that the sub generates this distorted output as a by-product of its response to a 20hz input signal.
Exactly - in most subs playing a 20 Hz tone most of the sound you are actually hearing is distortion.