I think finals are soft. Not sure why you would set power level to 100 watts and try to keep power output down by reducing audio input. I always use power control of rig to set output power. I am not sure if finals are less efficient when run this way causing them to run warmer than normal. PSK is considered a 100% duty cycle mode and some rigs can get pretty warm.
I have always set the power level at 100 watts on the three different rigs I have used to operate digital.
Then I adjust the TX gain on the SignaLink USB so the radio output is 5-25 watts. No ALC reading at all. Clean signal and my radio stays cool. When I used my Icom 7000 for digital modes I never had any issues with the radio heating up to the point where I would worry about it. Again I set the radio power level to 100 watts and used the TX gain to lower the output.
From what I have read from the many digital ops, they all say to control the output with the sound card and set the rig at 100 watts.
Either way, as long as you have a good clean signal then keep doing what you are doing.
But I still find it hard to fathom that operating digital modes for a month or so has softened the finals in that IC 718. Maybe the PS is acting up. At lower digital power the op might not notice any PS issues. When he tries to run 100 watts he has a problem.
I can not remember what the fuse holders are on the 718. If they are the blade type I would be checking those fuses. I had that problem with my IC 7000, took the fuses out, cleaned them and put them back in and the power came right back up to 100 watts. Highly recommended that those fuses be changed for normal fuse holders as others have had the same problem.