Okay, so I was reading this post and two things leap out at me:
1. The point cost of the Toughness powers are still the same as if purchased normally (actually, slightly more expensive with the 2 point 'buy in' from Modular Abilities) and the powers work the same as if they were permanent purchases - whether a Toughness and/or a Recovery, the mechanics work the same. Even switching out, the powers cost the same, work the same and have the same limitations. The character is using (in your example) quite a few of his form points to do this instead of taking other abilities. I wouldn't say the Catch applies twice, in your example, because when the character switches, he's giving up the Toughness power. Even with both powers at the same time, the point cost/catch refund are calculated as normal. The player/character is choosing to spend the points on both powers (limiting other options) or giving up one power for another.
As a previous poster put a similar comment - You get hit with cold iron - take full damage, no Recovery benefit. You get hit with iron with out purchasing Toughness, take full damage, no Recovery benefit. You get hit with enough power to take stress/consequences, you can Recover, but it will take time. Remeber - only consequences that get reduced below mild get removed at the beginning of the next scene. That's a huge benefit, to be sure, but not the panacea some people make Recovery out to be. If you get messed up enough in the first fight, by the time the car chase ends, you could still have some significant consequences in play. All the Recovery powers (not sure about Mythic) state you still need time to fully Recover. That aspect of the power simply gives you a reason to start Recovery. It's not like casting a healing spell in D&D.
2. If you're trying to resolve how the Catch would work when not taking powers - it says in the entry that the presence of the Catch can make the character uncomfortable, even if it's not being used to directly harm. Maybe from a social arena, he's off balance from the presence of so much iron (not to mention potentially it's alloys - ie steel) or perhaps if somehow effects his Glamours (even if he's drawing them from the IoP, he still has to direct them). In short, the Catch can have some pretty far reaching effects, depending on the scene and circumstance. It would still be part of the character, it would simply be more "mechanically" pronounced when in relation to Toughness powers.
Oh, and in the interests of full disclosure - I'm the player in question. I normally wouldn't post, but I'd like to make sure all view points are taken in to account.
