Yuma
I work for a generation utility and we recently mothballed 4 x 40 yr old Parsons 60 MW, hydrogen cooled only turbogenerators. The seal and lube oil systems were de-commissioned while the underbelly heaters remained in-service. We left the rotors in situ and did not seal the generators in an enclosure or anything like that, we only used a (semi - because of air leaks) closed air loop with a de-humidifier to continuously pump dry air through the generators. We did not rotate the rotors at any stage.
After a period of 18 months, two of the units were re-commissioned without any problems to the generator.
Why not nitrogen? Big $$ to maintain the nitrogen volume because of all the leaks.
Why not CO2? As ScottyUK mentioned, CO2 will begin to form an acid with any moisture present which is not good for your winding insulation and especially your retaining rings. CO2 should really only be used as a purging gas and should be left in the generator for as little time as possible.
There are likely many other reasons that I have not included above.
One important point. You are correct regarding the problem of continuously operating the rotor on turning gear. It is not a good idea at all. The problem you have described, we commonly referred to as "copper dusting".
At the low speed of turning gear, the rotor windings are continuously pounded due to their own weight and this may lead to the creation of copper dust. The copper dust may result in a short circuit between turns of the winding or to ground. As you mentioned, this problem is most likely in the end winding regions of the field winding and is made even worse if the clearances between the winding and the slot insulation are large.
While we have not experienced a failure of our machines as a result of this, I have read many papers describing the problem of others.
A good source of information on this subject is "Inspection of Large Synchronous Machines - Checklists, Failure Identification and Troubleshooting" by Isidor Kerszenbaum in the IEEE Power Engineering Series.
Hope this helps