I think you are spot on...I believe Smith " may' give him a one-time break for the sake of good CS but it's doubtful...I think he owns this one 100% for all the reasons you stated..
Back in the day, I was the final instructor in my agency to attend the Smith revolver school before we transitioned to G...each student was allowed to bring one of their personal revolvers to tune...so I'm good to go, but before I would spend for the PC work, I would CK around...many fine...
But... warranty returns don't seem to bother some gun makers...I guess you send a thousand out and if 250 come back you simply work that figure into your pricing structure...and to heck with your industry reputation
Very nice LS...if I was fortunate enough to acquire one, I'd send it to bill laughridge for install of his Novak style rear sight and mate to a green FO front...but opinions will differ