When I bought my boat in 2003, it had the original Hood continuous line furler. You are correct, it is not an efficient reefing system. As either the teeth in the furling drum, or furling line itself, wear, you risk having a reefed sail come completely unreefed when you least expect it and probably in high winds when you really don't want it to happen. I muddled through my first year of ownership with a 110 genoa that did not require reefing very often, but when I bought a 150 the next year, I knew I had to have a furler that was a safe reefing system, too. I installed a Furlex 200 and have been generally happy with this rather high end furler/reefer. If I had it to do over again, I'd probably go with the much cheaper CDI furler with the SS bearing upgrade. While not as high quality as the Furlex, friends that have the CDI (one of which is another H28.5) really like them.
You must have a headsail reefing system that you can trust.