Onhwy61, the manufacturer's customer is the consumer. The distributor's customer is the consumer. The dealer's customer is the consumer. Audiophiles are the consumers - if the consumers stop buying the product from the dealers, then the distributor and the manufacturer are out of business.
The manufacturer's policies concerning aftermarket service are directed toward the consumer. The manufacturer is in the business of attracting and satisfying customers, so that they will attract even more in the future. Those customers are the audiophile consumers; the manufacturer is not in the business of trying to attract ever more distributors. If they direct all of their energies toward satisfying the distributor, it does not mean he will purchase any greater amount of product for distribution. If, on the other hand, they direct none of their energies toward satisfying the consumer, that does mean that eventually the distributor will be purchasing less product.
You say that Ernie has a problem because he purchased what had originally been a gray-market unit. That is not accurate, because it is circular reasoning. Make no mistake: Ernie has a problem because the manufacturer's and distributor's policies are set up to give him one. Ernie had no problem with his unit because of its provenance. It is the manufacturer and especially the distributor who apparently have a problem with Ernie's unit because of its provenance. The unit's provenance is not Ernie's fault, and it shouldn't be his problem.
Merely saying that the rules are the rules doesn't make the rules smart or fair, and if the companies involved don't make rules that are smart and fair, the consumers will retaliate with the power of their pocketbooks. Then the manufacturer and the distributor will be left with just their rules, instead of customers. It is not Ernie who needs to rethink his decision to buy his CDP as being a mistake, it is the distributor and the manufacturer who need to rethink their decision not to offer their services for sale as being a mistake.
Ozfly, agree to what extent we may, nevertheless your second-to-last sentence implies that in this case, it was free warranty service that was the issue. It was not, though on your last sentence I think we can all agree, and for more than merely "some hint".