Your Duffy IS very cute! I don't think cutting a seam and restitching would significantly weaken a bear, provided it was re-sewn together properly. The bear was stitched together originally, after all, and bear hospitals know all about proper restoration techniques. I'm sure the beans would be encased just so that they wouldn't drift to various parts of the body anyway (otherwise you'd soon have beans in the feet, which is not helpful!). Anyway, that sounds like a great fix!
My 2011 12" Duffy (one of the very first 12" bears that came out in 2010 or maybe early 2011...and they made so many they were selling them into April 2012 at a 66% discount) has "polyester fibers." He's more tightly stuffed than Smiling Shellie May.
EVA foam did come up in a search as stuff used in beanbags as well, though that doesn't sound right to me for plushies. I would think that the wrestling mat stuff, at least (which DOES have some give) can be shredded pretty finely (if they wanted) to have some squishability. I'd go so far as to say it might be an acceptable material for stuffing heads, to ensure they keep their shape through tons of hugs. (After all, most creatures have pretty rigid heads.) But I do not like that material for stuffing bear bodies.
Eeee-va foam is probably more like the stuff in fire extinguishers, I think. Wait; maybe that's WALL-E foam.

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