Thanks for the reports, but: 1) Automake can only run whatever install program has been specified by the user. It does not seem possible (or sensible) to me to guarantee atomic installs at the automake level. (This behavior by cyrus imap also seems undesirable to me, but whatever.)
2) I have never heard of "fast install" before, and have barely ever touched libtool in general. You'll need to ask the libtool maintainers. 3) I have seen explicit invocation of "/bin/sh <script>" in other contexts. I'm not sure why (noexec filesystems are all I can think of), but I don't see a need to change it, either. If it's causing an actual problem, feel free to report that. Sorry this is not a very helpful reply, but it's what I've got. --best, karl.