Sounds like typical customer (dis)service to me. The strategy is to drag the conversation around in circles long enough, that you will accept a solution from them that never happens.
The OP may have something wrong with his head. Skullcandy has warrantied every piece of equipment that I've sent in no questions asked, all while doing it in a timely professional matter. And honestly, if your goin to bitch about how bad their warranty menu is, life's a bitch. I'd much rather wait two minutes to talk instead of not get my headphones warrantied and be fucked in the ass. It's worth it all the way.