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Meganobs can't take a dedicated transport with a Killkannon upgrade, but there are no rules (that I could find) saying they can't ride in one. So my question is: can you simply take a Battlewagon with a Killkannon as a Heavy Support and still use it to transport Meganobs?

I don't see any reason why they would be unable to

Nor I.

Read through it three times now, and it seems fine. Only 6 will fit, but seems ok.

I agree with kirsanth. It's a vehicle with a transport capacity. After the game begins, the rules are clear about anyone being able to use such vehicles. Arguably, you could also deploy them in it to begin with.

It will have a lower transport capacity, but they can ride in it just fine. Bear in mind it takes up a HS Slot.

Off-topic: I would guess that the purpose of the restriction is not to prevent MAN from ever getting near killkannons, but to prevent you from being able to take up to... 8 killkannon BW's. (3 Elites transports, 2 Troops transports, 3 HS).