Right, but as a loyal customer who paid a premium for a premium product, you deserve good customer service. This is my philosophy. If you were my customer, I'd want you to come back and buy from me again. There is a middle that is easily reached between companies and consumers. You could be made whole for a relatively low cost and the company could make enough margin to either profit or pay the wages of the customer service person who handles your case. You in turn tell your buddies or post the great experience you had on a public forum and create goodwill, trust, and equity in the brand.

In Dave's hypothetical above, there should be a fee for replacement.