It may be worth testing this in 8.0.6 or 8.1 if you have a test Server environment available to you.
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Thanks Dan for the suggestion! Sounds like version 8 is an improvement.
Found out today while playing with Tableau that for our crosstab report, if I went to Worksheets > Copy > Crosstab and paste it into Excel.
It'll basically look like screenshot #2 (with values repeating instead of merged). Not sure if this will help anyone or not though.