Bob,
I agree with your logic about the wanting to be returned Wraptor, but I think you have to qualify that approach. If Paul had been in business long enough with the tool, he wouldn't be asking for opinions, he'd have his mind established on what this type of situation calls for. Probably a firm policy would be in place and detailed at his website and expressed through the retailers as well. Paul is a real smart guy and certainly capable of coming to his own conclusions, but the fact that he asked about it here, and so far is probably still in the fairly early stages of getting the Wraptor out into the world, I think the more magnanimous he will cover all discrepancies where possible, is a good way to look at it. Firming up loose ends will evolve and this experience will help promote that.
I have made things for a living for a very long time, and it's more a gut feeling than anything else. It seems like that is what has been determined to do, and since Paul is a prideful man with a fine product, I suspect that their is a degree of disconcertedness about it. I sure can't speak for him and his way of thinking, but I am proud of him how he handled it. Of course if the tool was trashed or something, that would be a different matter.
My 2...