In some ways, I do see what you're saying here.
However, the reason I'm frustrated is not by what was offered because, trust me, I do see that it is a fair deal taken out of context.
That said, when I purchased the camera, the sales rep told me in no uncertain terms if there was an issue with the camera, there would be an over the counter swap for an equal quality, equal feature camera. This is what I wanted. This is what I've gotten in the few times prior that I've had issues with electronics at either Future Shop or Best Buy.
Complain as you may, their Product Exchange Plans have treated me very well. I had an older Creative Zen Vision:M that broke down. I paid a fair amount for it at the time, but the change in technology meant that a player with more features, more storage was less expensive, and allowed me to get that player with no hassle.
When I paid for the warranty at LD, it was made clear that it would be an equal match. But apparently because I got mine on sale, that wasn't a fair expectation. There was no advisement that it would be a like value product, rather a like feature. For the price I paid 2 years ago, there is nothing even close in the feature range for my camera. The quality of everything is lower. That wasn't even a consideration, and the attitude taken was that there was no ifs, ands or buts about it. It was like value, take it or leave it. And the attitude toward the problems I was having also rubbed me the wrong way. The rep that I dealt with was rude and condescending.
I will say that it may have been the store. I've never, ever had problems with purchases at any other LD store in the past.
As for the hesitation about them duplicating the problem, I showed multiple samples over a wide period of time, which gave a clear "picture" of the problems I was having. They assured me that it was fine, and there'd be no problems, I'd just have to wait.
To get the call afterwards saying that "Well, maybe it was just a cleaning and maintenance issue" was frustrating, as I'd gone through the rigamaroll to confirm the problem. It's not an issue that's easily replicated in a standard office environment, but I was able to replicate it indoors, multiple times. Hence why I showed the pictures there. Why they weren't able to confirm that with the warranty people baffles me, or at least why they did not ask to have hard copy samples to send to the warranty division before getting a call a few weeks later advising that they were having problems finding the problem.
And as for the cash value for the camera, it's easily lessened by the 20% on top I had to pay for the warranty.
I wouldn't be so upset if, when I asked upon purchase of the warranty, this was made clear. I would have expected that. However, like I've stated, the warranty was misrepresented and I feel stung by that.
Maybe other dealings with the LD warranty wouldn't be an issue, but I won't do it again. At the very least, not from that store.