FYI, I have the HyperCard stack of the HD20 service source manual and trust me when I say it doesn't offer any revelations other than preventing you from breaking the clips when you open the case. It's from a time when Apple's answer even to their field techs was "return to Apple for repair". Anybody who wants a copy just PM me.
I too have finally been able to diagnose my dead HD20 and it appears to be a dead drive. The logic board powers a replacement drive just fine. This is most likely the case with yours Academician since mine exhibited all the same symptoms as yours.
I did open the HD itself and the platters and the internals all seem to be in working order. So if nothing physically is damaged, then does the problem lie on the drive's circuit-board? I haven't a clue as to where to start looking, if so.
It is sad to think that as these drives fail there is no good way to replace them. In fact I find it almost unbelievable there is no modern way to replace the drives, even with some sort of homemade adapter. Well, here's hoping.
I was looking at the Apple Service Source manual for the HD20 and they list the drive as part number 661-0373. This happens to also be the same part number as the Apple 20SC hard drive that shipped with the HD 20SC, the original SE 20MB configurations and may also be in the II, IIx, IIcx, IIci & IIfx, SE/30 & possibly Classic. So I checked the service source manuals for them and sure enough, Apple calls them "Revision A". Revision B is a different part number and cannot be interchanged with the Revision A drive. Unless Apple decided to reuse a part number, the drive in the HD20 appears to be a SCSI hard drive of a certain configuration. In which case, it should be possible to adapt any SCSI drive to work with the HD20. Anyone with a 20MB drive from one of those Macs should check the part number and see if it may be a compatible drive with the HD20, since you can switch out your SCSI HD with any old SCSI drive, but the HD20 can evidently only use one.
FYI, Service Source indicates of the two Revisions of the 20MB hard drive the 661-0373 is the only one that is drop-in replacement. In other words all other drives require the techs to insert/remove them from their carrier/sleds and configure the dip switches, terminator resistors, etc. for the specific enclosure, but the 661-0373 is pre-configured by Apple