Jim:
You make some good points about how much many people will put up with if the product they are purchasing is exceptional. I know that I've done this many times if I feel the hassle is worth it. The thing is...we don't know that about the product this guy is producing. Ken Smith may have some unique ways of dealing with customers, but his product has sufficient recognition as a superior one that he can get away with it.
My thoughts on the Boogieman not supporting the product in question were not so much based on his responses to questions (which did not come across well), but rather, his no returns policy. Now while it may be a hassle to deal with ebay, paypal etc. with returns, if one has a good product, believes in that product, and wants to sell sufficient numbers to make a name for oneself, a no-return policy might not be the best strategy to take as you bring it to market. I don't know many people who would be willing to invest that amount of money in a new product (which may, in fact, be excellent and is of course a lot less expensive) that they know little about other than the claims made by its developer.
If the claims are true, I would personally consider his product if I ever find that Guild Starfire I lust after. I'd agree, however, that replacing original Series I or II electronics with his product, unless they weren't working and could not be repaired would border on craziness.
And of course all of this doesn't take in to consideration any of the legal issues that may exist.