Before Model States, I think this still would have been achievable using iAssemblies.
Using Positional Representations for something like this pallet is a misunderstanding of the logic behind them, in my opinion. PosReps are for situations where an assembly can move. Think of something like a hydraulic cylinder - when you extend or retract it, that isn't a design change.
For the pallet, you're really talking about design variants. No individual pallet will ever have two different spacings of the fork tubes and be able to switch between them. Instead, you're making "A" and "B" variants of the design. iAssemblies or Model States are both more appropriate tools to use in that case.
There are cases I have seen where PosReps in a weldment would be completely logical. I tried to find an example of where we have done this at my company previously, but had no luck, so I'll just have to describe it. Imagine a tube welded to a larger piece. A lifting link is installed on this tube, but is not welded (it pivots around the tube). A capture plate is then welded to the tube. Thus you end up with a piece that can move, but is retained by a welded piece. Inventor does not handle this scenario very well. If you make the assembly a weldment, you can't move the link (no PosReps or Flexibility). If you don't make it a weldment, you can't show the welds.
In short, I think there are good reasons to have PosReps available for weldments, but the pallet example here, in my opinion, isn't one of them. Existing tools (iAssemblies and Model States) already do a better job of reflecting the intent with that application. But there are definitely situations in the real world where assemblies that are welded together still have some movable (but not removable) parts.