dissiation
Ian,
I think you are making a fundamental logical error in your calcs.
The power disipated in the resistor is (I squared) x R - the only thing relevent to power dissipated in the resistor is the RMS current and its resistance. (The AVO measures RMS current) The fact 230v AC is applied across the series combination of the diode and the resistor does not mean that the dissipation is 230 x I, as if you measure the voltage just across the resistor it's rms value will be 115.
My dim and distant memory from years ago when I started playing with electronics in the mid 1960's is that Solon made a dual voltage soldering iron where for 115v the diode was shorted and for 230v (well real proper 240v actually then!) the diode was left in circuit.
AWEM