Juston,
I'm not sure I conveyed my thoughts properly.
Let me have a crack at it — would you agree that a summary is:
* REI's policy does have its costs — higher prices, reduced patronage dividend, inability to carry certain goods (ones that would have too high a probability of being returned), etc.
* Some people do abuse REI's policy. REI is probably not going to change that policy. Even if they did want to change it, changing it to eliminate the abuses without eliminating the good part (properly used insurance) would be difficult.
* The grossest form of abuse is buying something with the up-front intent to use it and return it. That is just plain dishonest.
* A lesser form of abuse is not doing proper due diligence up front, and returning something that you should have known would not suit you or returning something in worse condition than should have been necessary.
* The valuable part of the policy is an insurance factor. This covers you for things that you had no reasonable way to know up front, even with the best due diligence. You return such things in the best possible condition consistent with discovering they are wrong for you.
* To the extent costs are raised by people using the insurance factor in the best possible way, that is why you buy certain things there. The insurance is worth what it costs.
This would all mean that people who do as you and Ben describe above are not abusing the system because:
* You are doing the best possible due diligence before the purchase.
* You are doing the least damaging possible evaluation after the purchase.
* In spite of your care, you discover a reason to return the item — that is what the insurance factor is for.
— MV